Business & Economics Books:

Endogenous Economic Fluctuations

Studies in the Theory of Rational Beliefs
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Description

This volume presents a new theory of expectations called "rational beliefs". Contrary to the standard theory which views the origin of uncertainty as being exogenous to the economic system, the theory of rational beliefs holds that a crucial component of social risk and economic fluctuations is endogenously propagated by variations in the state of beliefs of market participants. One part of the book provides an exposition of the foundation of the theory of rational beliefs. A second part explores the structure of general equilibrium models in which market participants hold rational beliefs. The "Applications" part of the book studies the behaviour of asset prices and rates of return on financial assets. It seeks to demonstrate that endogenous uncertainty provides a uniform paradigm for the study of economic fluctuations.
Release date Australia
August 21st, 1997
Audience
  • Professional & Vocational
Contributor
  • Edited by Mordecai Kurz
Illustrations
XIV, 356 p.
Pages
356
Dimensions
156x234x22
ISBN-13
9783540626121
Product ID
6550220

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