Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/32560
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dc.contributor.authorPasche, Markusen_US
dc.date.accessioned2009-10-20en_US
dc.date.accessioned2010-05-20T14:33:36Z-
dc.date.available2010-05-20T14:33:36Z-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/32560-
dc.description.abstractOne of Keynes' core issues in his liquidity preference theory is how fundamental uncertainty affects the propensity to hold money as a liquid asset. The paper critically assesses various formal representations of fundamental uncertainty and provides an argument for a more boundedly rational approach to portfolio choice between liquidity and risky assets. The choice is made on the basis of individual beliefs which are subject to mental representations of the underlying economic structure. Self-consciousness arises when the agent is aware of the fact that beliefs are dispersed among agents due to the absence of a true model. Responding to this fact by increasing liquidity preference is rationalized by the higher ex post performance of choice. Moreover, we analyze the case that the portfolio is partially financed by debt. It is explored how fundamental uncertainty affects the volume of the portfolio and hence money and credit demand as well as the probability of debt failures.en_US
dc.language.isoengen_US
dc.publisher|aUniv. [u.a.] |cJenaen_US
dc.relation.ispartofseries|aJena economic research papers |x2009,085en_US
dc.subject.jelG11en_US
dc.subject.jelD81en_US
dc.subject.jelE41en_US
dc.subject.jelB31en_US
dc.subject.ddc330en_US
dc.subject.keywordliquidity preferenceen_US
dc.subject.keywordportfolio choiceen_US
dc.subject.keywordself-confidenceen_US
dc.subject.keywordself-consciousnessen_US
dc.subject.keywordfundamental uncertaintyen_US
dc.subject.keywordbounded rationalityen_US
dc.subject.keywordKeynesen_US
dc.subject.keywordKnighten_US
dc.subject.stwLiquiditätspräferenzen_US
dc.subject.stwEntscheidung bei Unsicherheiten_US
dc.subject.stwBeschränkte Rationalitäten_US
dc.subject.stwPortfolio-Managementen_US
dc.subject.stwAnlageverhaltenen_US
dc.subject.stwTheorieen_US
dc.titleFundamental uncertainty, portfolio choice, and liquidity preference theoryen_US
dc.type|aWorking Paperen_US
dc.identifier.ppn610710486en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-

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