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Full-Text Articles in Economic Theory
A Critical Reinterpretation Of Shacklean Decision Theory, Se Ho Kwak
A Critical Reinterpretation Of Shacklean Decision Theory, Se Ho Kwak
Economics Department Working Paper Series
Shackle was one of the representative critics of probability calculus. His alternative decision theory was mathematically reformalized by Katzner till 1990s. Following the Katzner’s reformalized framework, this paper presents a new interpretation of Shacklean theory by focusing on the common stage structure of the decision-making. This paper shows that the characteristics of Shackle-Katzner framework can be explained as: (1) the non-distributive and non-additive ordinal measure of subjective uncertainty, (2) the incomplete list of imaginable future states, (3) the valuation of “importance” reflecting various types of loss- psychology, and (4) the final choice of the action is made on the set …
A Functional Representation Of Potential Surprise Ordering, Se Ho Kwak
A Functional Representation Of Potential Surprise Ordering, Se Ho Kwak
Economics Department Working Paper Series
In the history of economic thought, Shackle was one of the representative critics about probability based economic theory. Specifically, he constructed his own concept of subjective uncertainty called potential surprise to replace probability. In 1980s, the potential surprise is axiomatized by Katzner as Kolmogorov-styled measure defined on the 𝜎-field over the set of possible states. In this paper, potential surprise function is reconstructed as the functional representation of potential surprise ordering on the space of hypotheses about future called monad.
Portfolio Adjustment And Panic Behavior Under True Uncertainty, Se Ho Kwak
Portfolio Adjustment And Panic Behavior Under True Uncertainty, Se Ho Kwak
Economics Department Working Paper Series
G.L.S. Shackle was one of the representative critics against probability- based economic theory, and influenced some Post-Keynesians and Austri- ans. During the 1980s and 1990s, his alternative framework was math- ematically reconstructed by Katzner. In this paper, we will reformalize the Shackle-Katzner framework to explain the financial decision-making of the individual. For this, the portfolio diversification between two non- monetary assets will be explained by the reformalized model introduced here, and then moved to the analysis about a case of money and a non- monetary asset. Based on these findings, a few possible scenarios of panic behavior in the portfolio …
Three Essays On The Theory Of Environmental Regulation: Hybrid Price And Quantity Policies And Regulation In The Presence Of Co-Pollutants, Insung Son
Doctoral Dissertations
This dissertation contains three original essays in the economic theory of environmental regulation. The main motivations for this work are two problems: the design of greenhouse gas (GHG) policies when emissions of these gases interact with so-called co-pollutants and the design of hybrid price and quantity policies to deal with the uncertainty in the benefits and costs of controlling GHG emissions. Abstract Concerns about how best to control GHGs have generated intense interest in the co-benefits and adverse side-effects of climate policies. Efforts to reduce CO2 emissions can reduce emissions of flow pollutants that are emitted along with CO …