Showing papers in "The Review of Economic Studies in 1970"
937 citations
TL;DR: In this paper, the authors present an alternative way to relate the expected utility and mean-variance approaches, and present proofs of the usefulness of mean and variance in situations involving less and less risk.
Abstract: Publisher Summary The chapter presents an alternative way to relate the expected utility and mean-variance approaches. It presents proofs of the two general theorems involved in an aspect of the mean-variance model—namely, the usefulness of mean and variance in situations involving less and less risk. It describes a defense of mean-variance analysis and highlights its exact limitations along with those for any r-moment model. The mean and variance of wealth are approximately sufficient parameters for the portfolio selection model when the probability distribution of wealth is compact. In the compact case, moments of order 3 and higher are small in magnitude relative to the first two moments of the portfolio return; hence, a limiting approximation indicates that only the first two moments are relevant for optimal portfolio selection.
747 citations
TL;DR: Ebsco as mentioned in this paper focused on a study which dealt with production function, heterogeneous capital and the theory of distribution and relations between the wage, the rate of interest and the product per worker in the two-commodity economy.
Abstract: Focuses on a study which dealt with production function, heterogeneous capital and the theory of distribution. Relations between the wage, the rate of interest and the product per worker in the two-commodity economy; Details on the surrogate production function; Premises of the traditional theory of distribution. (Из Ebsco)
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TL;DR: In this article, a simplified two-sector model is presented in which the overhead capital sector exhibits increasing returns to scale, and basic properties of the optimal growth path are discussed, from an economic standpoint, the model might be relevant in bearing on some basic issues of development programming.
Abstract: Following closely the approach to optimal economic growth taken in the work of Frank Ramsey [11], a highly simplified two-sector model is presented in which the \" overhead capital \" sector exhibits increasing returns to scale. Basic properties of the optimal growth path are discussed. From an economic standpoint, the model might be relevant in bearing on some basic issues of development programming. Mathematically, this kind of a model has an interesting structure because it is a combination of convex and concave sub-problems.
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