Economic Theory, 1968–80
Abstract
Abstract In the 1970s, after the award of the Nobel prize, Paul Samuelson continued to engage in mathematical theorizing but he decided to focus his efforts more narrowly. One of the areas on which he decided to specialize was finance where, with Robert C. Merton, drawing on assumptions about arbitrage, he came close to deriving the Black–Scholes formula for option pricing. He also became drawn into computerized trading in commodities and the development of index funds, working in support of John Bogle and Vanguard. In addition, he returned to theoretical arguments relating to Marxian systems, optimal taxation, and methods for the analysis of welfare.
Fields of Study & Subjects
Economic Theory and Institutions
Economic theories and models
Economic Theory and Policy
Publication details
- Journal / source
- Oxford University Press eBooks
- Pages
- 456–492
- Publication date
- 11 March 2026
- Language
- EN
- Document type
- Book chapter