Skip Navigation


Cambridge Journal of Economics Advance Access originally published online on May 3, 2005
Cambridge Journal of Economics 2006 30(1):105-122; doi:10.1093/cje/bei049
This Article
Right arrow Full Text
Right arrow Full Text (PDF)
Right arrow All Versions of this Article:
30/1/105    most recent
bei049v1
Right arrow Alert me when this article is cited
Right arrow Alert me if a correction is posted
Services
Right arrow Email this article to a friend
Right arrow Alert me to new issues of the journal
Right arrow Add to My Personal Archive
Right arrow Download to citation manager
Right arrowRequest Permissions
Google Scholar
Right arrow Articles by McGovern, S.
Right arrow Search for Related Content
Related Collections
Right arrow B41 - Economic Methodology
Right arrow G10 - General
Right arrow G14 - Information and Market Efficiency; Event Studies
Social Bookmarking
Add to CiteULike   Add to Connotea   Add to Del.icio.us  
What's this?

© The Author 2005. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved.

Article

Dealing with the Duhem–Quine thesis in financial economics: can causal holism help?

Siobhain McGovern*

* Dublin City University, Ireland

Address for correspondence: Siobhain McGovern, Dublin City University Business School, Dublin City University, Dublin 9, Ireland; email: siobhan.mcgovern{at}dcu.ie.

Abstract

Acceptance of the Duhem–Quine thesis implies a recognition that empirical tests of individual hypotheses are in fact tests of individual hypotheses in conjunction with the networks from which those hypotheses are derived. This leads to a problem in the evaluation of disconfirming evidence: is it the individual hypothesis or the network that is refuted? This paper examines how financial economists deal with this ‘joint-testing’ problem in their empirical evaluation of the efficient markets hypothesis. Causal holists argue that the holistic testing they espouse circumvents the difficulties surrounding joint-testing problems. This paper assesses whether a causal holist approach can resolve the ambiguity surrounding the evidence against the efficient markets hypothesis. It concludes that, without a resolution of the ontological–epistemological tension in causal holism identified by Fleetwood (Cambridge Journal of Economics, 2002, vol. 26, 27–45) and a clearer outline of the nature of holistic testing, causal holism cannot help financial economists deal with the implications of the Duhem–Quine thesis for empirical testing.

Key Words: Causal Holism • Duhem–Quine thesis • Efficient markets hypothesis

JEL classifications: B41, G10

Manuscript received February 17, 2003; final version received December 2, 2004.


Add to CiteULike CiteULike   Add to Connotea Connotea   Add to Del.icio.us Del.icio.us    What's this?




Disclaimer:
Please note that abstracts for content published before 1996 were created through digital scanning and may therefore not exactly replicate the text of the original print issues. All efforts have been made to ensure accuracy, but the Publisher will not be held responsible for any remaining inaccuracies. If you require any further clarification, please contact our Customer Services Department.