Measuring Financial Cash Flow and Term Structure Dynamics

Kent State GSM Dept. of Finance Working Paper

27 Pages Posted: 6 Dec 2001

See all articles by Cornelis A. Los

Cornelis A. Los

University of California at Irvine - The Paul Merage School of Business; EMEPS Associates

Date Written: November 30, 2001

Abstract

Financial turbulence is a phenomenon occurring in anti - persistent markets. In contrast, financial crises occur in persistent markets. A relationship can be established between these two extreme phenomena of long term market dependence and the older financial concept of financial (il-)liquidity. The measurement of the degree of market persistence and the measurement of the degree of market liquidity are related. To accomplish the two research objectives of measurement and simulation of different degrees of financial liquidity, I propose to boldly reformulate and reinterpret the classical laws of fluid mechanics into cash flow mechanics. At first this approach may appear contrived and artificial, but the end results of these reformulations and reinterpretations are useful quantifiable financial quantities, which will assist us with the measurement, analysis and proper characterization of modern dynamic financial markets in ways that classical comparative static financial - \ economic analyses do not allow.

JEL Classification: C63, D52, G10, G14

Suggested Citation

Los, Cornelis A., Measuring Financial Cash Flow and Term Structure Dynamics (November 30, 2001). Kent State GSM Dept. of Finance Working Paper. Available at SSRN: https://ssrn.com/abstract=293257 or http://dx.doi.org/10.2139/ssrn.293257

Cornelis A. Los (Contact Author)

University of California at Irvine - The Paul Merage School of Business ( email )

SB1
Irvine, CA 92697-3125
United States

HOME PAGE: http://merage.uci.edu/research-faculty/faculty-directory/Cornelis-Los.html

EMEPS Associates ( email )

Escondido, CA 92029
United States
760-294-0255 (Phone)
858-635-4783 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
319
rank
92,080
Abstract Views
1,649
PlumX Metrics