Volume 2, in combination with Volume 1, presents the state of the art in finance
sixty years after the revolution in modern finance pioneered by Fischer Black, Eugene
Fama, Michael Jensen, Robert Lucas, Harry Markowitz, Robert Merton, Merton Miller,
Franco Modigliani, John Muth, Steven Ross, Myron Scholes, William Sharpe, to mention
only a few, and more than thirty years after this revolution was challenged by the field
of behavioral finance pioneered by the work of Robert Schiller, Richard Thaler, Andrei
Shleifer, and others. It comes at a time when much of the field is being challenged as a
result of the financial crisis. The surveys are written by leaders in financial economics.
They provide a comprehensive report on developments since Volume 1 in both theory
and empirical research in finance at a level that, while rigorous, is nevertheless accessible
to researchers not intimate with the field and doctoral students in economics, finance,
and  related  fields.  Like Volume  1, Volume  2  should  prove  an  invaluable  resource  to
researchers and an excellent pedagogical tool for teaching doctoral students.