Microfoundations. Uncertainty and Chinese Households' Intertemporal Consumption Research

Author: Wang Haohan
Publisher:
Publish Date: 2006-12-25
Features: The uncertainty of economic agents can be defined as follows: any behavior deviating from the assumption of complete rationality is subjective uncertainty, while objective uncertainty refers to the uncertainty brought by the environment in which economic agents operate. Neoclassical economic theory posits that there exists only one completely certain and complete information economic system, where the entire economy is regarded as closed and deterministic, 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 using mathematical axiomatic systems like probability. This book is an expansion and revision of the author's doctoral dissertation, "An Analysis of Uncertainty in the Consumption of Chinese Traditional Residences during the Transition Period." The choice of this topic stems from the author's preference for modern uncertainty economics and a deep-seated fascination with uncertainty. The profound insights and wisdom of the two masters of uncertainty economics, Frank H. Knight and Keynes, regarding the issue of uncertainty, further attracted the author to continue researching this field. Additionally, the study of resident consumption cannot be separated from the special context 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.