Financial economists created the impetus for passive investing, which is now a trillion-dollar industry. In a recently published article in the European Journal of Philosophy of Science on this topic we analysed how exactly the models created by financial economists helped design the world of index funds and ETFs that forms the massive trillion-dollar industry of passive investing. This story of impactful academic research raises questions about the nature of “impact” of social science research.
H.C.K. Heilmann, M. Szymanowska & M. Vergara-Fernández (2023). Passive Investing: The Trillion-Dollar Trend Pioneered by Nobel Prize-winning Financial Economists. Blogpost on Erasmus University Rotterdam, February 2023.