How Productive is Optimism? A Simple Keynes-type "Big Push" Model

The paper examines the impacts of ambiguity and ambiguity attitudes on macro-economic "Big Push" model. By formally modelling ambiguity, optimism and pessimism in economic industrialization, we show the results with Keynesian flavour: sufficient optimism can create the "Big Push" to help the economy achieve Pareto-optimal equilibrium and sufficient pessimism cause economies to become "stuck" in an inefficient state.

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Year of publication:	2009-10-22
Authors:	Kelsey, David ; Pang, Wei
Institutions:	School of Economics, Kingston University
Subject:	Ambiguity \| Pessimism \| Optimism \| Big push

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Extent:	application/pdf
Series:	Economics Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series Economics Discussion Papers Number 2009-2 28 pages
Classification:	D81 - Criteria for Decision-Making under Risk and Uncertainty ; E32 - Business Fluctuations; Cycles ; H32 - Firm
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010941112