Microfoundations. Uncertainty and Intertemporal Consumption of Chinese Residents Research

Author: Wang Haohuan
Publisher:
Publish Date: 2006-11-01
Features: The uncertainty of economic agents can be defined as follows: any behavior that deviates from the assumption of complete rationality is subjective uncertainty, while objective uncertainty is the uncertainty brought about by the environment in which economic agents operate. Neoclassical economic theory assumes that there is only one completely certain and complete information economic system, where the entire economy is regarded as closed and certain, with true uncertainty excluded and all risks quantifiable. John Maynard Keynes (J.M. Keynes), the founder of modern uncertainty economics, viewed probability as an objective belief and considered uncertainty as something that cannot be identified or measured by mathematical axiomatic systems like probability. This book is based on the author's doctoral dissertation, "An Analysis of Uncertainty in the Consumption of Chinese Folk Dwellings During the Transition Period," which has been expanded and revised. The choice of this dissertation topic stems from the author's fondness for modern uncertainty economics and a deep-seated obsession with uncertainty. The profound thoughts and wisdom of the two masters of uncertainty economics, Frank H. Knight and Keynes, regarding the issue of uncertainty, have attracted the author to continue researching this field. Additionally, the study of resident consumption cannot be separated from the special background of China's economic transition and development. This macro-level institutional environment and institutional change inevitably has a crucial impact on the micro-level consumption behavior of residents.