Theory of financial risk

Fernando Estrada

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines relationships between theory of financial risk and size. Based on the work of Makridakis / Taleb [2009] and Taleb / Tapiero [2009], presents the problems of excessive risk and imbalances caused by the size of firms. Markets mixed on firm growth traps externalities can influence risk, high-cost for the commons. A policy of regulation and control in markets, while necessary, are still insufficient in economies with little institutional support. Externalities of risk and firm size categories are fundamental to understanding the present financial crisis since the economies of scale.

Keywords: Finance; financial engineering; risk assesment. (search for similar items in EconPapers)
JEL-codes: B0 B4 B41 G0 G01 G1 G10 G15 G28 G3 G32 G38 Z1 (search for similar items in EconPapers)
Date: 2011-03-17
New Economics Papers: this item is included in nep-rmg
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:29665

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