Tom's Feb 8 edits and new lecture on entropy

Author: thomassargent30

lectures/MyGraph5.jpg

@@ -5,6 +5,30 @@
 
 
 
+@book{Shannon_1949,
+author = {Claude E. Shannon and Warren Weaver},
+title = {The Mathematical Theory of Communication},
+year = {1949},
+publisher = {University of Illinois Press},
+address = {Urbana} 
+}
+
+@Article{Backus_Chernov_Zin,
+  author={David Backus and Mikhail Chernov and Stanley Zin},
+  title={{Sources of Entropy in Representative Agent Models}},
+  journal={Journal of Finance},
+  year=2014,
+  volume={69},
+  number={1},
+  pages={51-99},
+  month={February},
+  keywords={},
+  doi={},
+  abstract={ type=\"main\"> We propose two data-based performance measures for asset pricing models and apply them to models with recursive utility and habits. Excess returns on risky securities are reflected in the pricing kernel's dispersion and riskless bond yields are reflected in its dynamics. We measure dispersion with entropy and dynamics with horizon dependence, the difference between entropy over several periods and one. We compare their magnitudes to estimates derived from asset returns. This exercise reveals tension between a model's ability to generate one-period entropy, which should be large, and horizon dependence, which should be small.},
+  url={https://ideas.repec.org/a/bla/jfinan/v69y2014i1p51-99.html}
+}
+
+
 @article{Hopenhayn_Nicolini_97,
   author = {Hopenhayn, Hugo A and Nicolini, Juan Pablo},
   title = {{Optimal Unemployment Insurance}},
@@ -1042,13 +1066,16 @@ @article{Hans_Scheink_2009
   month={01}
 }
 
+
+
 @book{hansen2008robustness,
   title={Robustness},
   author={Hansen, Lars Peter and Sargent, Thomas J},
   year={2008},
-  publisher={Princeton university press}
+  publisher={Princeton University Press}
 }
 
+
 @book{Whittle1963,
   title={Prediction and regulation by linear least-square methods},
   author={Whittle, Peter},

lectures/MyGraph5.png

@@ -40,6 +40,7 @@ parts:
   numbered: true
   chapters:
   - file: five_preferences
+  - file: entropy
   - file: robustness
   - file: rob_markov_perf
 - caption: Time Series Models