“Liquidity Preference as Behavior Towards Risk”
E790041
“Liquidity Preference as Behavior Towards Risk” is a seminal 1958 paper by economist James Tobin that reformulates Keynesian liquidity preference theory using modern portfolio theory to explain money demand as a response to risk and uncertainty.
All labels observed (2)
| Label | Occurrences |
|---|---|
| Keynesian liquidity preference theory | 1 |
| “Liquidity Preference as Behavior Towards Risk” canonical | 1 |
How this entity was disambiguated
This entity first appeared as the object of triple T9303475 — resolving that mention is where its identity was fixed. The disambiguator weighed these candidate entities and picked the highlighted one (or “None”, minting a new entity). This is how homonymy is resolved: the same surface form can point to different entities.
NED1
Entity disambiguation (via context triple)
gpt-5-mini-2025-08-07
Target entity: “Liquidity Preference as Behavior Towards Risk” Context triple: [James Tobin, notableWork, “Liquidity Preference as Behavior Towards Risk”]
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A.
“Expectations and the Neutrality of Money”
“Expectations and the Neutrality of Money” is a seminal economic paper by Robert Lucas Jr. that helped launch the rational expectations revolution by analyzing how anticipated monetary policy affects real economic activity.
-
B.
Risk, Uncertainty and Profit
Risk, Uncertainty and Profit is a foundational 1921 work in economics that distinguishes measurable risk from unmeasurable uncertainty and links entrepreneurial profit to bearing such uncertainty.
-
C.
Interest and Prices: Foundations of a Theory of Monetary Policy
Interest and Prices: Foundations of a Theory of Monetary Policy is a highly influential macroeconomics book that develops a rigorous New Keynesian framework for analyzing monetary policy and inflation dynamics.
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D.
A Theory of the Consumption Function
A Theory of the Consumption Function is Milton Friedman’s influential 1957 economics book that introduced the permanent income hypothesis to explain household consumption behavior over time.
-
E.
The Positive Theory of Capital
The Positive Theory of Capital is a foundational work in Austrian economics that systematically analyzes the nature of capital, interest, and time preference in the production process.
- F. None of above. chosen
- G. Unsure - the case is ambiguous/there is not enough information to decide.
NED2
Entity disambiguation (via description)
gpt-5-mini-2025-08-07
Target entity: “Liquidity Preference as Behavior Towards Risk” Target entity description: “Liquidity Preference as Behavior Towards Risk” is a seminal 1958 paper by economist James Tobin that reformulates Keynesian liquidity preference theory using modern portfolio theory to explain money demand as a response to risk and uncertainty.
-
A.
“Expectations and the Neutrality of Money”
“Expectations and the Neutrality of Money” is a seminal economic paper by Robert Lucas Jr. that helped launch the rational expectations revolution by analyzing how anticipated monetary policy affects real economic activity.
-
B.
Risk, Uncertainty and Profit
Risk, Uncertainty and Profit is a foundational 1921 work in economics that distinguishes measurable risk from unmeasurable uncertainty and links entrepreneurial profit to bearing such uncertainty.
-
C.
Interest and Prices: Foundations of a Theory of Monetary Policy
Interest and Prices: Foundations of a Theory of Monetary Policy is a highly influential macroeconomics book that develops a rigorous New Keynesian framework for analyzing monetary policy and inflation dynamics.
-
D.
A Theory of the Consumption Function
A Theory of the Consumption Function is Milton Friedman’s influential 1957 economics book that introduced the permanent income hypothesis to explain household consumption behavior over time.
-
E.
The Positive Theory of Capital
The Positive Theory of Capital is a foundational work in Austrian economics that systematically analyzes the nature of capital, interest, and time preference in the production process.
- F. None of above. chosen
Statements (42)
| Predicate | Object |
|---|---|
| instanceOf |
academic paper
ⓘ
economics paper ⓘ |
| approach |
expected utility framework (implicit)
ⓘ
mean-variance analysis ⓘ |
| author | James Tobin ⓘ |
| contribution |
formalizes the tradeoff between risk and return in holding money versus bonds
ⓘ
interprets money demand as a response to risk and uncertainty ⓘ introduces mean-variance analysis into the theory of money demand ⓘ links liquidity preference to behavior toward risk rather than only to interest rate levels ⓘ reformulates Keynesian liquidity preference as a problem of portfolio selection under risk ⓘ shows that risk-averse agents hold money as part of an optimal portfolio ⓘ |
| countryOfOrigin |
United States
ⓘ
linked to:
United States of America
|
| field |
financial economics
ⓘ
macroeconomics ⓘ monetary economics ⓘ portfolio theory ⓘ |
| influenced |
macroeconomic models incorporating portfolio balance
ⓘ
modern monetary economics ⓘ subsequent theories of money demand ⓘ theory of asset demand under uncertainty ⓘ |
| influencedBy |
John Maynard Keynes
ⓘ
Keynesian economics ⓘ emerging portfolio selection theory ⓘ |
| keyConcept |
bond-holding under uncertainty
ⓘ
expected return ⓘ money as a risky asset ⓘ portfolio diversification ⓘ risk aversion ⓘ tradeoff between liquidity and yield ⓘ variance of returns ⓘ |
| language | English ⓘ |
| mainTopic |
asset allocation
ⓘ
liquidity preference ⓘ money demand ⓘ portfolio choice ⓘ risk and uncertainty ⓘ |
| notableFor |
being a seminal paper in the portfolio-theoretic analysis of money demand
ⓘ
bridging Keynesian liquidity preference and modern portfolio theory ⓘ influencing later work on risk, uncertainty, and asset demand ⓘ |
| publicationYear | 1958 ⓘ |
| theoreticalFramework |
Keynesian liquidity preference theory
ⓘ
modern portfolio theory ⓘ |
How these facts were elicited
The pipeline generated the facts above by prompting gpt-5.1 with this entity's name + description and the instruction below.
Instruction
You are a knowledge base construction expert. Given a subject entity and a description of it, return factual statements that you know for the subject as a JSON list of dictionaries(triples), where keys must be "subject", "predicate" and "object". The number of facts may be very high, between 25 to 50 or more, for very popular subjects. For less popular subjects, the number of facts can be very low, like 5 or 10. # Requirements - If you don't know the subject at all, return an empty list. - If the subject is not a named entity, return an empty list. - Include at least one triple where predicate is "instanceOf". - Do not get too wordy. - Separate several objects into multiple triples with one object.
Input
Subject: “Liquidity Preference as Behavior Towards Risk” Description of subject: “Liquidity Preference as Behavior Towards Risk” is a seminal 1958 paper by economist James Tobin that reformulates Keynesian liquidity preference theory using modern portfolio theory to explain money demand as a response to risk and uncertainty.
Referenced by (2)
Full triples — surface form annotated when it differs from this entity's canonical label.
Liquidity Preference as Behavior Towards Risk
→
theoreticalFramework
→
Keynesian liquidity preference theory
ⓘ
subject linked to:
“Liquidity Preference as Behavior Towards Risk”
linked to: “Liquidity Preference as Behavior Towards Risk”