Dow Theory Introduction Dow Theory has been around for almost years, yet even in today's volatile and technology-driven markets, the basic components of Dow Theory still remain valid. Developed by Charles Dow, refined by William Hamilton and articulated by Robert Rhea, Dow Theory addresses not only technical analysis and price action, but also market philosophy.
The social phenomena discussed in this series of essays all center around the problem of individuals in groups faced with the choice of doing what is best for themselves or what is best for the group.
Instances of the phenomena are called by many different names: Unfortunately, the academic programs that cover these various manifestations of the "individual vs. You will not find the "Social Dilemma" department at any university. In particular, some universities now offer an advanced degree specializing in what is called Public Choice Theory, e.
Public Choice Theory is directed toward the study of politics based on ecomonic principles. I would think you would be immediately puzzled by this, since most universities already have a Political Science department.
The problem is that until Public Choice Theory came along, universities did not teach the way politics actually functions but, instead, taught the way it should work ideally or the way they wished it would work.
This practice of teaching what should be normative theory rather than what is positive theory is fairly common at universities and continues to this day at most universities, in politics as well as other disciplines.
Fortunately, if you look carefully, you can find some universities that teach the facts about politics, to the best of our abilities to understand it, and that discipline is called Public Choice.
I should point out that Public Choice is actually more general than just politics, but that is its main emphasis. Let us examine various aspects of the theory.
Politicians do not devote their lives for your and my benefits anymore than McDonalds does. Strangely, however, many people think so -- including university professors that teach politics and philosophy.
The most important contribution of Public Choice Theory is that it recognizes that politicians are motivated by self interest -- just like you and me. In fact, more so than you and me!
If that is so, and it is, then our expectations of politicians changes dramatically. A politician's self interest is far more serious than yours and mine for their self interest actions can be disastrous for the rest of us -- such as sending thousands of young people to prison or to be killed in a pointless war, just to improve their political situation.
One point worth noting here is that the Founding Fathers of the U. They did a good job and the fact that we are having so much trouble with our government today results from our losing sight of the reality that politicians are self-interested and the public not enforcing the laws the Founding Fathers created.
Analysts of the school apply the logic of microeconomics to politics and generally find that whereas self-interest leads to benign results in the marketplace, it produces nothing but pathology in political decisions.
These pathological patterns represent different kinds of "free-riding" and "rent-seeking" by voters, bureaucrats, politicians, and recipients of public funds.
Coalitions of voters seeking special advantage from the state join together to get favorable legislation enacted. Rather than being particularly needy, these groups are likely to be those whose big stake in a benefit arouses them to more effective action than is taken by the taxpayers at large over whom the costs are spread.
In general, individuals with "concentrated" interests in increased expenditure take a "free ride" on those with "diffuse" interests in lower taxes. Similarly, the managers of the "bureaucratic firms" seek to maximize budgets, and thereby to obtain greater power, larger salaries, and other perquisites.Dear Twitpic Community - thank you for all the wonderful photos you have taken over the years.
We have now placed Twitpic in an archived state. Charles Dow developed Dow Theory from his analysis of market price action in the late 19th century.
Until his death in , Dow was part-owner as well as editor of The Wall Street plombier-nemours.comgh he never wrote a book on these theories, he did write several editorials that reflected his views on speculation and the role of the rail and industrial averages.
Overview. In social theory, reflexivity may occur when theories in a discipline should apply equally forcefully to the discipline itself, for example in the case that the theories of knowledge construction in the field of sociology of scientific knowledge should apply equally to knowledge construction by sociology of scientific knowledge practitioners, or when the subject matter of a.
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Financial Risk Forecasting is a complete introduction topractical quantitative risk management. Overview. In social theory, reflexivity may occur when theories in a discipline should apply equally forcefully to the discipline itself, for example in the case that the theories of knowledge construction in the field of sociology of scientific knowledge should apply equally to knowledge construction by sociology of scientific knowledge practitioners, or when the subject matter of a.