EconTalk cover image

Lars Peter Hansen on Risk, Ambiguity, and Measurement

EconTalk

00:00

Navigating Risk and Uncertainty

This chapter discusses the complexities of the Value at Risk (VaR) model and its impact on systemic risk measurement in financial firms. It highlights the psychological biases, such as overconfidence, that can distort risk assessments and lead to flawed decision-making. The conversation advocates for a balanced approach to quantitative analysis in economics, acknowledging the limitations of models while still leveraging their structured understanding of probabilities.

Transcript
Play full episode

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
App store bannerPlay store banner
Get the app