Massimo Marinacci at His Second ERC Advanced Grant

THE RESEARCH PROJECT, FUNDED WITH EURO 1.4 MLN, AIMS TO CREATE A UNIFIED MACROFINANCE AND DECISION THEORY FRAMEWORK FOR THE STUDY OF MODEL UNCERTAINTY

Massimo Marinacci (Department of Decision Sciences and IGIER) obtained an outstanding achievment, winning a second ERC Advanced Research Grant. The European Research Council decided to fund his INDIMACRO-Individual decisions and macroeconomic robustness project with €1.4 mln. Marinacci has recently completed another ERC-funded project, which had started in 2009.
 
The agents’ ignorance about the “true” probabilistic model that governs the uncertain environments they face is the common insight that informs the ideas of model uncertainty in Macro-Finance and ambiguity in Decision Theory. Marinacci’s research project aims to create a unified Macro-Finance and Decision Theory framework for the study of model uncertainty, which broadens the scope of Decision Theory and provides novel foundations for a common framework.
 
“Because model uncertainty is pervasive (e.g., which climate model to use? which is the correct production function for human capital?)”, Marinacci says, “we expect that our theoretical findings will push the research frontier and the analysis of the role of uncertainty in other fields”.
 
Marinacci’s is the 17th ERC Grant hosted by Bocconi. Chance is that the project will start in September.

by Fabio Todesco