Sunday, July 29, 2012
Lars Syll — Keynes and Knight on uncertainty – ontology vs. epistemology
Report of a conversation between Lars and Paul Davidson on the philosophical underpinning of probability and its relevance in economics and finance.
Keynes and Knight both asserted uncertainty but their concept of it were different. Keynes asserted ontological non-ergodicity, whereas Knight assumed ontological ergodicity and asserted only epistemological non-ergodicity.
Lars and Paul Davidson explore the implications of this distinctions and come down on the side of Keynes.
These distinctions are key in understanding the fundamental difference between the mainstream and Post Keynesianism.
Read it at Lars P. Syll's Blog
Keynes and Knight on uncertainty – ontology vs. epistemology
Lars P. Syll