Microfoundations, Uncertainty, and Research on Intertemporal Consumption of Chinese Residents

Author: Wang Haohan
Publisher:
Publish Date: 2006-11-01
Features: The uncertainty of economic agents can be defined as follows: any behavior deviating from the assumption of complete rationality is subjectively uncertain, while objective uncertainty arises from the environment in which economic agents operate. Neoclassical economic theory posits that there exists only a single economic system characterized by complete certainty and perfect information, where the entire economy is regarded as closed and deterministic, with true uncertainty excluded and all risks quantifiable. John Maynard Keynes, the founder of modern uncertainty economics, viewed probability as an objective belief, while he considered uncertainty to be something that cannot be identified or measured using mathematical axiomatic systems such as probability. This book is an expansion and revision of the author's doctoral dissertation, "An Analysis of Uncertainty in Residential Housing Consumption in China during the Transition Period." The choice of this topic stems from the author's fondness for modern uncertainty economics and a deep-seated fascination with uncertainty. The profound and insightful ideas of the two masters of uncertainty economics, Frank H. Knight and Keynes, who have greatly inspired the author to continue researching this field, further motivated this decision. Additionally, the study of resident consumption cannot be divorced from the special context of China's economic transition and development. The macro-level institutional environment and institutional changes inevitably have a crucial impact on the micro-level consumption behavior of residents.