Risk aversion, learning spillovers, and path-dependent economic growth. (English) Zbl 0968.91004
Each agent \(j\in\) receives an independent shock influencing her degree of risk aversion, then undertakes a risky or safe investment. Prior investment in ‘related’ industries reduces the uncertainty. The shock history and this intertemporal interaction determine the long-run growth rate.
MSC:
| 91B30 | Risk theory, insurance (MSC2010) |
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