Macro Markets
Encyclopedia
Macro Markets is a book by Robert Shiller
. It was published in 1993 by the Clarendon Press imprint of the Oxford University Press
. It suggests that humans cannot fully diversify away their risk
as portfolio theory would like us to. This is because there are missing market
s, such as the general geographically computational risk of living in a certain area. The book envisions completing endowment markets by providing tradable risk factors.
Robert Shiller
Robert James "Bob" Shiller is an American economist, academic, and best-selling author. He currently serves as the Arthur M. Okun Professor of Economics at Yale University and is a Fellow at the Yale International Center for Finance, Yale School of Management...
. It was published in 1993 by the Clarendon Press imprint of the Oxford University Press
Oxford University Press
Oxford University Press is the largest university press in the world. It is a department of the University of Oxford and is governed by a group of 15 academics appointed by the Vice-Chancellor known as the Delegates of the Press. They are headed by the Secretary to the Delegates, who serves as...
. It suggests that humans cannot fully diversify away their risk
Risk
Risk is the potential that a chosen action or activity will lead to a loss . The notion implies that a choice having an influence on the outcome exists . Potential losses themselves may also be called "risks"...
as portfolio theory would like us to. This is because there are missing market
Missing market
A missing market is a situation in microeconomics where a competitive market allowing the exchange of a commodity would be Pareto-efficient, but no such market exists.-Examples:A variety of factors can lead to missing markets:...
s, such as the general geographically computational risk of living in a certain area. The book envisions completing endowment markets by providing tradable risk factors.