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While Keynes is known for his theory of normal backwardation in futures markets, he is less known as a trader in these … markets. The question arises whether his theory acted as a guide to his trading activity or, rather, whether it was his … trading activity that shaped his theory. Backwardation was not viewed by Keynes as a permanent feature of futures market, but …
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The purpose of this chapter is to portray a mode of inquiry into expectations by three Cambridge authors in which the expectations are not conceptualized or modelled on the basis of a probability distribution. As to whether this is due to a clearly stated opposition (as in the case of Keynes) or...
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This paper analyzes liability rules when consumers and third parties/the environment incur harm. Expected harm is convex in the level of output and modeled as a power function. We show that the social ranking of liability rules previously established for the case in which only consumers suffer...
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