Knowledge that Transforms

To make high-quality research more accessible and easier to explore.

31 results ✕ Clear filters

Pure Economics as a Stochastical Theory

Econometrica 1938 6(1), 40
THE CLASSICAL THEORY CONSIDER TWO commodities, (0) and (1), the first being denoted as money, and the other being for the sake of representation identified with a certain kind of bills, say payable 20 years hence. By a possible contract (x, y), we shall mean that A buys the amount x of bills from B, paying for it in money y units, the price being p = y/x. In the special case which we shall use as an illustration, we may put