Two-factor model

Two-factor model

Usually, Fischer Black's zero-beta version of the capital asset pricing model. It may also refer to another type of model whereby expected returns are generated by any two factors.

Two-Factor Model

1. An economic model that states that production is derived from two factors. These factors are the availability of cost of labor and the availability and cost of capital.

2. A form of the capital asset pricing model that does not account for beta. This form of the CAPM was developed by Fischer Black.

3. Any economic model that discusses two factors as predominate or exclusive causes of some event.
References in periodicals archive ?
An analysis of the Partner Self-Esteem--Timing two-factor model (the Pro-social Model) in which both factors were correlated (r = .
First, we present a two-good, two-factor model (2 x 2 model) and derive a necessary and sufficient condition for terrorism to raise trade.
To this end, we specify a model for stochastic mortality; here we adopt the parsimonious two-factor model (1-2) by Cairns, Blake, and Dowd (CBD; 2006b) where the logits of the conditional 1-year mortality rates ([q.
Panel A is a two-factor model including the market factor (MKT) and the GDP factor (MPR).
Results from the EFA of the English PIS suggested a two-factor model to explain the observed data.
First a one-factor model was analysed and it was compared with a separate, but correlated, two-factor model of social and economic exchanges.
The two-factor model also showed better fit to the data according to the comparative fit index (two-factor model = .
The two-factor model of attitudes toward menopause and their antecedents is shown in Figure 1.
Using a ten-item interdependent self-construal and an eight-item independent self-construal scale, the two-factor model showed a significant incremental fit as demonstrated by the reduction in chi-square values, [DELTA][chi square] (1) = 152.
Next, another two-factor model incorporating Physiological hyperarousal and a General negative affect factors was tested.
An exploratory factor analysis revealed a three-factor model that accounted for 54% of the variance of the intercorrelation matrix and a two-factor model that accounted for 47% of the variance.
Nigg said, "with the caveat that the three-factor model, with impulsivity as a separate factor, does have some improvement in fit over the two-factor model.