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The Identification of Beliefs From Asset Demand
Author(s) -
Kübler Felix,
Polemarchakis Herakles
Publication year - 2017
Publication title -
econometrica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 16.7
H-Index - 199
eISSN - 1468-0262
pISSN - 0012-9682
DOI - 10.3982/ecta13880
Subject(s) - identification (biology) , asset (computer security) , economics , econometrics , actuarial science , financial economics , computer science , computer security , botany , biology
The demand for assets as prices and initial wealth vary identifies beliefs and attitudes towards risk. We derive conditions that guarantee identification with no knowledge either of the cardinal utility index (attitudes towards risk) or of the distribution of future endowments or payoffs of assets; the argument applies even if the asset market is incomplete and demand is observed only locally.