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Record W3023399398

Chaper 10 – Capital growth: Theory and practice*

2008· book-chapter· en· W3023399398 on OpenAlexaff
Leonard C. MacLean

Bibliographic record

VenueHandbook of asset and liability management · 2008
Typebook-chapter
Languageen
FieldEconomics, Econometrics and Finance
TopicEconomic theories and models
Canadian institutionsDalhousie University
Fundersnot available
KeywordsEconomicsRisk aversion (psychology)Investment (military)Capital (architecture)PortfolioEconometricsMicroeconomicsInvestment strategyDistribution (mathematics)Fixed investmentMarginal product of capitalIndex (typography)Expected utility hypothesisMathematical economicsFinancial economicsMathematicsFinancial capitalCapital formationComputer science
DOInot available

Abstract

fetched live from OpenAlex

Publisher Summary This chapter is a survey of the theoretical results and practical uses of the capital growth approach. It presents the alternative formulations for capital growth models in discrete and continuous time. Various criteria for performance and requirements for feasibility are related in an expected utility framework. Typically, there is a trade-off between growth and security with a fraction invested in an optimal growth portfolio determined by the risk aversion criteria. Models for calculating the optimal fractional Kelly investment with alternative performance criteria are formulated. In capital accumulation under uncertainty, a decision maker must determine how much capital to invest in riskless and risky investment opportunities over time. The investment strategy yields a steam of capital, with investment decisions made so that the dynamic distribution of wealth has desirable properties. The distribution of accumulated capital to a fixed point in time and the distribution of the first passage time to a fixed level of accumulated capital are variables controlled by the investment decisions. An investment strategy which has many attractive and some not attractive properties is the optimal strategy, where the expected logarithm of wealth is maximized. This strategy is also referred to as the Kelly strategy. It maximizes the rate of growth of accumulated capital asymptotically. With the Kelly strategy, the first passage time to arbitrary large wealth targets is minimized, and the probability of reaching those targets is maximized. However, the strategy is very aggressive since the Arrow-Prat risk aversion index is essentially zero. Hence, the changes of losing a substantial portion of wealth are very high, particularly if the estimates of the returns distribution are in error. In the time domain, the chances are high that the first passage to subsistence wealth occurs before achieving the established wealth goals

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame machine prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. The Gemma side is a direct model label for every work in the frame, read from the title-only record. The Codex side is a classifier learned from the 10,348 direct Codex labels and calibrated to design-weighted sample rates; fields without enough sample support carry no Codex call. Candidate is the union of the two sides; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels.

metaresearch head score (Codex)0.002
metaresearch head score (Gemma)0.008
Version: metacan-v3-hybrid-931329e0061cValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Not applicable · Consensus signal: none
GenreCandidate signal: Other · Consensus signal: Other
Teacher disagreement score0.014
Threshold uncertainty score0.047

Distilled classifier scores by category (both heads)

CategoryCodexGemma
Metaresearch0.0020.008
Meta-epidemiology (narrow)0.0010.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0020.003
Science and technology studies0.0010.005
Scholarly communication0.0050.006
Open science0.0010.002
Research integrity0.0020.003
Insufficient payload (model declined to judge)0.0140.003

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.022
GPT teacher head0.204
Teacher spread0.182 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one source (direct Gemma or distilled Codex), not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designNot applicable
Domainnot available
GenreOther

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations1
Published2008
Admission routes1
Has abstractyes

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