Decision theory and stochastic growth

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F67985998%3A_____%2F23%3A00575747" target="_blank" >RIV/67985998:_____/23:00575747 - isvavai.cz</a>

Nalezeny alternativní kódy

RIV/00216208:11640/23:00582607

Výsledek na webu

<a href="https://www.aeaweb.org/articles?id=10.1257/aeri.20220456" target="_blank" >https://www.aeaweb.org/articles?id=10.1257/aeri.20220456</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1257/aeri.20220456" target="_blank" >10.1257/aeri.20220456</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Decision theory and stochastic growth

Popis výsledku v původním jazyce

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 empirical distributions that match the solution to the wishful thinking or rational inattention problem.

Název v anglickém jazyce

Decision theory and stochastic growth

Popis výsledku anglicky

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 empirical distributions that match the solution to the wishful thinking or rational inattention problem.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

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OECD FORD obor

50201 - Economic Theory

Projekt

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Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2023

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

American Economic Review: Insights

ISSN

2640-205X

e-ISSN

2640-2068

Svazek periodika

5

Číslo periodika v rámci svazku

3

Stát vydavatele periodika

US - Spojené státy americké

Počet stran výsledku

20

Strana od-do

357-376

Kód UT WoS článku

001074507000005

EID výsledku v databázi Scopus

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