An exploration of the effects of pessimi
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Andrew B. Abel
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Article
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2002
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Elsevier Science
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English
β 215 KB
The subjective distribution of growth rates of aggregate consumption is characterized by pessimism if it is ΓΏrst-order stochastically dominated by the objective distribution. Uniform pessimism is a leftward translation of the objective distribution of the logarithm of the growth rate. The subjective