In order to test the theory they analyzed whether their data fit the predictions of a well-known theoreticalmodel of short-termism developed by Harvard economics professor Jeremy Stein, who was recently named to the Board of Governors of the Federal Reserve System.
Much theoretical work has been done to understand and model such changes, but the lesson I draw from chaos theory is that recognizing such changes in hindsight may be simple, but predicting them in advance is and will continue to be extremely difficult.
There are still important unanswered questions about the Standard Model and we have to verify that this remarkable theoretical house of cards can stand on its own.