000			01226nam a22001457a 4500
999			_c525274 _d525274
008			240220b ||||| |||| 00| 0 eng d
100			_aRobson, Arthur Samuelson, Larry and Steiner, Jakub _950004
245			_aDecision theory and stochastic growth
260			_aThe American Economic Review: Insights
300			_a5(3), Sep, 2023: p.357-376
520			_aThis paper examines connections between stochastic growth and decision problems. We use tools from the theory of large deviations to show that wishful thinking decision problems are equivalent to utility maximization problems, both of which are equivalent to growth maximization under idiosyncratic risk. Rational inattention problems are equivalent to growth-optimal portfolio problems, both of which are equivalent to growth maximization under aggregate risk. Stochastic growth generates extreme inequality, with nearly all wealth eventually held by those who happen to have faced empirical distributions that match the solution to the wishful thinking or rational inattention problem.- Reproduced https://www.aeaweb.org/articles?id=10.1257/aeri.20220456
773			_aThe American Economic Review: Insights
906			_aDECISION MAKING
942			_cAR