Circuit Theory of Finance

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By James Kim 

One day while sitting down and thinking, I noticed how so many of the engineers these days are going into the financial sector. I would surmise that it was because of the mathematical confidence engineers have over business students right from the starting gate. It occurred to me that circuits and financial modeling have a natural relationship. In my excitement of discovering something genuinely new, I discovered that it was already thought of before. From what I can understand of the papers I've read, the approach came from a macroeconomic financial discipline rather than the microeconomic engineering perspective. The key factor in the relationship between circuit theory and financial analysis is that circuit theory provides a means for effective analysis. Though this seems to be an obvious relationship, I wasn't able to find much except a starting point with Bossone's white paper on the circuit theory of finance.

I will later present my thoughts and findings.

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