Decision Under Risk and Time

3 units

This course covers topics on individual decision making, subject to risk and to inter-temporal considerations. The emphasis is on economic modeling, which combines both theory and reality. The course will begin by establishing a framework for analyzing preferences about risky outcomes. This framework will be applied to practical problems such as economic development and finance . The remainder of the course will consider decision-making in the long run, with focuses on the problem of time inconsistency and other real-world implications.