The paper proves that the Bayesian approach to learning and expectations formation implies no propositions that could conceivably be refuted by observation. For a (non-expanding) universe infinite in time but finite at any point of time, it is shown that by a suitable choice of priors, any...

The paper proves a theorem on modified Kuhn-Tucker conditions for the case where a linearly homogenous function is part of the target function. These conditions are necessary and sufficient if target function and constraints satisfy certain re-quirements. Moreover, the envelope theorem can be...

Sugden (2000) offers an answer to the question of how unrealistic models can be used to explain real-world phenomena: by considering a set of unrealistic models, one may conclude that a result common to these models also holds for a realistic model that, however, is too complex to be analyzed,...