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  • Lecture 1 (1) .15

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    kanye
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    This document discusses common assumptions made in economic models including no transaction costs, constant interest rates, and complete markets. It notes that within the model presented, these assumptions are considered true and compares this to the assumption of a vacuum made in classical mechanics models.

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    Lecture 1(1).15

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    Lecture 1(1).15

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    This document discusses common assumptions made in economic models including no transaction costs, constant interest rates, and complete markets. It notes that within the model presented, these assumptions are considered true and compares this to the assumption of a vacuum made in classical mechanics models.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    5 views1 page

    Lecture 1 (1) .15

    Uploaded by

    kanye
    This document discusses common assumptions made in economic models including no transaction costs, constant interest rates, and complete markets. It notes that within the model presented, these assumptions are considered true and compares this to the assumption of a vacuum made in classical mechanics models.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Other frequent assumptions

    No transaction costs
    Constant interest rates
    Complete markets
    These are all true within our model
    Compare this to the assumption of vacuum in
    classical mechanics

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