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Uncertainty Within Economic Models

Name: Uncertainty Within Economic Models
Brand: World Scientific Publishing Co Pte Ltd
SKU: 05071206
Price: 70649 HUF
Availability: InStock
Author: Thomas J. Sargent
ISBN: 9789814578110

Thomas J. Sargent

Lars Peter Hansen

Language

English

Book Hardback

Libristo code: 05071206

Publishers World Scientific Publishing Co Pte Ltd, November 2014

Uncertainty within Economic Models is a collection of papers adapting and applying robust control th... Full description

Libristo code: 05071206

472 b

70 649 Ft

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Uncertainty within Economic Models is a collection of papers adapting and applying robust control theory to problems in economics and finance. This book extends rational expectations models by including agents who doubt their models and adopt precautionary decisions designed to protect themselves from adverse consequences of model misspecification. This behavior has consequences for what are ordinarily interpreted as market prices of risk, but big parts of which should actually be interpreted as market prices of model uncertainty. The chapters discuss ways of calibrating agents' fears of model misspecification in quantitative contexts.