Rational Beliefs Theory: A Review

Name: Rational Beliefs Theory: A Review
Brand: Vita e Pensiero
Price: 6.00 EUR
Availability: OnlineOnly

digital

Article

Magazine

RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI

Issue

RIVISTA INTERNAZIONALE DI SCIENZE SOCIALI - 2007 - 3

Title

Rational Beliefs Theory: A Review

Authors

Maurizio Motolese, Carsten Krabbe Nielsen

Publisher

Vita e Pensiero

Format

Article |

Pdf

Pages

Online from

03-2007

Issn

0035-676X (print) | 1827-7918 (digital)

€ 6.00

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Description

The Rational Beliefs Theory is founded on the observation that in most situations the same data may be rationally explained (in terms of a statistical model) in many different ways. This is obvious in a world where there is a limited number of observations. The novel idea of the Rational Beliefs Theory is to use a technical device (namely the concept of a non-stationary but stable measure) to formulate rational differences of opinion also in a world with «unlimited» data on the past performance of the economy. In this article we provide a non-technical introduction to the Theory of Rational Beliefs as well as a brief overview of the papers that have been written using this theory.