This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Knight on Risk and Uncertainty

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
LeRoy, Stephen F
Singell, Larry D, Jr
Abstract

It is argued that the received interpretation of Frank Knight's_(1921) classic risk-uncertainty distinction-as concerning whether or not agents have subjective probabilities-constitutes a misreading of Knight. On the contrary, Knight shared the modern view that agents can be assumed always to act as if they have subjective probabilities. The authors document their contention that by uncert ainty Knight instead meant situations in which insurance markets collapse because of moral hazard or adverse selection. Knight's discussion of market failure, a lthough always informal and in placesinaccurate, was in many respects a remarka ble anticipation of the modern literature. Copyright 1987 by University of Chicago Press.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://links.jstor.org/sici?sici=0022-3808%28198704%2995%3A2%3C394%3AKORAU%3E2.0.CO%3B2-1&origin=repec
File Format: application/pdf
File Function: full text
Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Publisher Info
Article provided by University of Chicago Press in its journal Journal of Political Economy.

Volume (Year): 95 (1987)
Issue (Month): 2 (April)
Pages: 394-406
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:ucp:jpolec:v:95:y:1987:i:2:p:394-406

Contact details of provider:
Postal: The University of Chicago Press, Journals Division, P.O. Box 37005 Chicago, IL 60637
Fax: (773) 753-0811
Email:
Web page: http://www.journals.uchicago.edu/JPE/home.html

Order Information:
Web: http://www.journals.uchicago.edu/JPE/order1.html

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

Related research
Keywords:

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Alvaro Sandroni & Wojciech Olszewski, 2008. "Manipulability of Future-Independent Tests," PIER Working Paper Archive 08-014, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania. [Downloadable!]
    Other versions:
  2. Baochun Peng, 2000. "Is Entrepreneurship Always Good for Growth?," Econometric Society World Congress 2000 Contributed Papers 0435, Econometric Society. [Downloadable!]
  3. Silvia Magri, 2009. "Household wealth and entrepreneurship: is there a link?," Temi di discussione (Economic working papers) 719, Bank of Italy, Economic Research Department. [Downloadable!]
    Other versions:
  4. Macauley, Molly, 2006. "Some Issues at the Forefront of Public Policy for Environmental Risk," Discussion Papers dp-06-01, Resources For the Future. [Downloadable!]
  5. Velamuri, Rama & Venkataraman, Sankaran, 2005. "Why stakeholder and stockholder theories are not necessarily contradictory: A knightian insight," IESE Research Papers D/591, IESE Business School. [Downloadable!]
  6. Peter R. Mueser & Donald Granberg, 1999. "The Monty Hall Dilemma Revisited: Understanding the Interaction of Problem Definition and Decision Making," Experimental 9906001, EconWPA. [Downloadable!]
  7. Silvia Magri, 2009. "The financing of small entrepreneurs in Italy," Annals of Finance, Springer, vol. 5(3), pages 397-419, June. [Downloadable!] (restricted)
  8. Maitreesh Ghatak & Massimo Morelli & Tomas Sjoström, 2001. "Credit rationing, wealth inequality, and allocation of talent," ICER Working Papers - Applied Mathematics Series 23-2001, ICER - International Centre for Economic Research. [Downloadable!]
  9. David M. Bruner, 2009. "Changing the Probability versus Changing the Reward," Working Papers 09-04, Department of Economics, Appalachian State University. [Downloadable!]
  10. Alvaro Sandroni & Wojciech Olszewski, 2008. "Falsifiability," PIER Working Paper Archive 08-016, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania. [Downloadable!]
  11. Adam Cagliarini & Alexandra Heath, 2000. "Monetary Policy-making in the Presence of Knightian Uncertainty," RBA Research Discussion Papers rdp2000-10, Reserve Bank of Australia. [Downloadable!]
  12. Baochun Peng, 2000. "Is Entrepreneurship Always Good for Growth?," CRIEFF Discussion Papers 0024, Centre for Research into Industry, Enterprise, Finance and the Firm. [Downloadable!]
  13. Baochun Peng, 2000. "How Well Does the Market Allocate Entrepreneurs?," CRIEFF Discussion Papers 0025, Centre for Research into Industry, Enterprise, Finance and the Firm. [Downloadable!]
Statistics
Access and download statistics

Did you know? Over five million full texts a year are downloaded through IDEAS.

This page was last updated on 2009-10-19.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.