Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/110917 
Year of Publication: 
2015
Series/Report no.: 
Economics Discussion Papers No. 2015-41
Publisher: 
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.
Subjects: 
rational expectations
uncertainty
subjectivity
JEL: 
F31
F47
C53
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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