Radical uncertainty: Sources, manifestations and implications

Christian Müller

No 2015-41, Economics Discussion Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: This paper argues that radical uncertainty is the outcome of standard market activity. The theoretical findings are corroborated with empirical analyses. The model example is applied to asset pricing and radical uncertainty is found a solution to various asset pricing "puzzles". In conclusion, radical uncertainty should form the basis of economic analysis.

Keywords: rational expectations; uncertainty; subjectivity (search for similar items in EconPapers)
JEL-codes: C53 F31 F47 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-hme, nep-ore and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.economics-ejournal.org/economics/discussionpapers/2015-41
https://www.econstor.eu/bitstream/10419/110917/1/827394314.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwedp:201541

Access Statistics for this paper

More papers in Economics Discussion Papers from Kiel Institute for the World Economy (IfW Kiel) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().