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- 22 Feb
Rational Expectations?
Economists use the term a lot – economist Robert Lucas won the Nobel Prize in 1995 largely because of his work in this field. But the term doesn’t make the mainstream business vernacular very often. Maybe it should. “Rational Expectations” […]
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- 22 Feb
Unknowledge
Unknowledge? Run that by me again? The rather enigmatic economist George L S Shackle tackled some interesting subjects in his career. One he called: unknowledge (in: the Bounds of Unknowledge (1983)). It is the problem of how do you know […]
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- 22 Feb
Interest Rates, Discount Rates, and the Net Present Value of Things
Why do we use exponential discounting to bring future valuation into the present? George Ainslie reckons that as individual decision-makers we do not discount the future according to some exponential curve, but instead apply an hyperbolic function. What this effectively […]
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