Uncertainty in Economics

Author:

Davidson Louise

Publisher

Palgrave Macmillan UK

Reference15 articles.

1. Davidson, P. (1991), ‘Is Probability Theory Relevant for Uncertainty? A Post Keynesian Perspective’, Journal of Economic Perspectives, 5. (Distinguishes between economic decisions where ergodic circumstances might prevail, and situations where non-ergodic circumstances are likely. The former are called routine decisions, the latter are crucial decisions.)

2. Hicks, J. R. (1977), Economic Perspectives (Oxford: Oxford University Press). (Argues for economic models where agents ‘know’ that they cannot reliably predict the future.)

3. Hicks, J. R (1979), Causality in Economics (New York: Basic Books). (Argues that economics is embedded in time in a way that the physical sciences are not. Consequently, stochastic theory is not applicable to most dynamic economic problems.)

4. Keynes, J. M. (1936), The General Theory of Employment, Interest and Money (New York: Harcourt). (The basis for the ‘Keynesian Revolution’ where the existence of uncertainty explains why market economies have no endogenous forces that assure full employment.)

5. Keynes, J. M. (1937), ‘The General Theory of Employment’, Quarterly Journal of Economics, 52 (A further extension of what Keynes means by ‘uncertainty’ and why uncertainty is the root cause of unemployment in market economies.)

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