Počet záznamů: 1
Decision theory and stochastic growth
- 1.0572663 - NHÚ 2024 RIV GB eng V - Výzkumná zpráva
Steiner, Jakub - Robson, A. - Samuelson, L.
Decision theory and stochastic growth.
London: Centre for Economic Policy Research, 2022. 18 s. CEPR discussion paper series, 17541. ISSN 0265-8003
GRANT EU: European Commission(XE) 770652 - BEHAVFRICTIONS
Institucionální podpora: RVO:67985998
Klíčová slova: stochastic growth * rational inattention * wishful thinking
Obor OECD: Economic Theory
https://repec.cepr.org/repec/cpr/ceprdp/DP17541.pdf
This paper examines connections between stochastic growth and decision problems. We use tools from the theory of large deviations to show that wishful thinking decision problems are equivalent to utility maximization problems, both of which are equivalent to growth maximization under idiosyncratic risk. Rational inattention problems are equivalent to growth-optimal portfolio problems, both of which are equivalent to growth maximization under aggregate risk. Stochastic growth generates extreme inequality, with nearly all wealth eventually held by those who happen to have faced an empirical distribution of shocks that matches the solution to the wishful thinking or rational inattention problem.
Trvalý link: https://hdl.handle.net/11104/0343267
Počet záznamů: 1