Portfolio adjustment and panic behavior under true uncertainty

Arbeitspapier

G.L.S. Shackle was one of the representative critics against probability-based economic theory, and influenced some Post-Keynesians and Austrians. During the 1980s and 1990s, his alternative framework was mathematically reconstructed by Katzner. In this paper, we will reformalize the Shackle-Katzner framework to explain the financial decision-making of the individual. For this, the portfolio diversification between two non-monetary assets will be explained by the reformalized model introduced here, and then moved to the analysis about a case of money and a non-monetary asset. Based on these findings, a few possible scenarios of panic behavior in the portfolio adjustment will be examined.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2022-18

Classification and Topics

• Classification: Wirtschaft

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kwak, Se Ho
• Event: Veröffentlichung
• (who): University of Massachusetts, Department of Economics
• (where): Amherst, MA
• (when): 2022

Further information

• DOI: doi:10.7275/b908-zx08
• Handle: http://hdl.handle.net/10419/283948
• Last update: 10.03.2025, 11:41 AM CET