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Continuous Time Production Economies Under Incomplete Information I: A Separation Theorem (Classic Reprint): A Separation Theorem (Classic Reprint)

Continuous Time Production Economies Under Incomplete Information I: A Separation Theorem (Classic Reprint): A Separation Theorem (Classic Reprint)

          
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About the Book

Excerpt from Continuous Time Production Economies Under Incomplete Information I: A Separation Theorem

Section I describes the continuous time economy and the structure of the uncertainty. Section 11 states the inference problem and describes the logical steps of the reasoning which leads to its solution. I then consider the simple case of one technology and one state variable. The solution is closely related to standard economic results and provides a useful intuition. It is rigorously proved using the general results of section III. Section III states the non linear filtering results and the solution to the general inference problem. The mathematical problem was solved by Liptser and Shiryayev (1978) and the proofs are therefore not presented. This introduction to the use of non-linear filtering theory for economic analysis is brief but self-contained. The power of the technique and its applicability to a broad range of economic problems warrant its extensive development in that section. However, the reader is alerted that section III is not necessary for the understanding of the substantive economic argument.

Section IV contains the main result of separability and establishes the general equilibrium conditions. The results are contrasted with the conclusions of prior research.

Finally, the conclusion summarizes the implications for general equilibrium and further research currently underway. A later companion paper3 will develop these issues.

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Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com

This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.


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Product Details
  • ISBN-13: 9780656398638
  • Publisher: Forgotten Books
  • Publisher Imprint: Forgotten Books
  • Height: 152 mm
  • Width: 6 mm
  • ISBN-10: 0656398639
  • Publisher Date: 08 Feb 2019
  • Binding: Hardback
  • Language: English


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