Can future systemic financial risks be quantified?: ergodic vs nonergodic stochastic processes
Different axioms underlie efficient market theory and Keynes's liquidity preference theory. Efficient market theory assumes the ergodic axiom. Consequently, today's decision makers can calculate with actuarial precision the future value of all possible outcomes resulting from today's...
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| Format: | Article |
| Language: | English |
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Editora 34
2009-12-01
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| Series: | Brazilian Journal of Political Economy |
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| Online Access: | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572009000400001 |