RE: Uncertainty and Liquidity Preference

[Paul Davidson <pdavidson@xxxxxxx>]

At 09:53 PM 7/12/99 -0700, you wrote:
>Doesn't this bias our sense of uncertainty towards merely sorites paradox
>types of ignorance.  Surely our problems of uncertainty are greater than
>mere additivity?  if the economic world is non-linear and non-ergodic, then
>surely our theory of ignorance, and error correction (improving predictive
>capacity) as well as errors in tracking it (the economy) must be non-linear
>as well?
>
>Ian
>

Nonlinearity is neither a necessary nor a sufficient condition for
nonergodicity.  One should not confound one with the other.  Nonlinear
systems can be ergodic and linear systems can be ergodic.
Paul Davidson
Holly Chair of Excellence in Political Economy
Editor, JOURNAL OF POST KEYNESIAN ECONOMICS [JPKE]
Economics Department -- 523 SMC
University of Tennessee
Knoxville, Tennessee 37996-0550
email: Pdavidson@xxxxxxx;   phone: (423)974-4221;    fax: (423) 974-4601
http://econ.bus.utk.edu/Davidson.html