Lucas tree model
E455412
asset pricing model
consumption-based asset pricing model
general equilibrium model
macroeconomic model
representative agent model
The Lucas tree model is a foundational asset-pricing framework in macroeconomics that models a representative agent’s consumption and investment decisions using a single, infinitely lived “tree” that yields a stochastic stream of dividends.
All labels observed (1)
| Label | Occurrences |
|---|---|
| Lucas tree model canonical | 1 |
How this entity was disambiguated
This entity first appeared as the object of triple T4586444 — 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: Lucas tree model Context triple: [Robert Lucas Jr., notableConcept, Lucas tree model]
-
A.
Ramsey–Cass–Koopmans model
The Ramsey–Cass–Koopmans model is a foundational neoclassical growth model in macroeconomics that analyzes optimal savings, consumption, and capital accumulation over time in a perfectly competitive economy.
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B.
Kaldor growth model
The Kaldor growth model is a post-Keynesian economic framework that explains long-run economic growth through the interaction of capital accumulation, income distribution, and demand-driven dynamics.
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C.
Solow growth model
The Solow growth model is a foundational economic framework that explains long-run economic growth through capital accumulation, labor or population growth, and exogenous technological progress.
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D.
Mundell-Fleming model
The Mundell-Fleming model is a macroeconomic framework that analyzes how monetary and fiscal policy affect output and exchange rates in an open economy with international capital flows.
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E.
Lucas critique
The Lucas critique is an influential argument in macroeconomics asserting that policy evaluations based on historical correlations are unreliable because people’s expectations and behavior change systematically when policy rules change.
- 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: Lucas tree model Target entity description: The Lucas tree model is a foundational asset-pricing framework in macroeconomics that models a representative agent’s consumption and investment decisions using a single, infinitely lived “tree” that yields a stochastic stream of dividends.
-
A.
Ramsey–Cass–Koopmans model
The Ramsey–Cass–Koopmans model is a foundational neoclassical growth model in macroeconomics that analyzes optimal savings, consumption, and capital accumulation over time in a perfectly competitive economy.
-
B.
Kaldor growth model
The Kaldor growth model is a post-Keynesian economic framework that explains long-run economic growth through the interaction of capital accumulation, income distribution, and demand-driven dynamics.
-
C.
Solow growth model
The Solow growth model is a foundational economic framework that explains long-run economic growth through capital accumulation, labor or population growth, and exogenous technological progress.
-
D.
Mundell-Fleming model
The Mundell-Fleming model is a macroeconomic framework that analyzes how monetary and fiscal policy affect output and exchange rates in an open economy with international capital flows.
-
E.
Lucas critique
The Lucas critique is an influential argument in macroeconomics asserting that policy evaluations based on historical correlations are unreliable because people’s expectations and behavior change systematically when policy rules change.
- F. None of above. chosen
Statements (50)
| Predicate | Object |
|---|---|
| instanceOf |
asset pricing model
ⓘ
consumption-based asset pricing model ⓘ general equilibrium model ⓘ macroeconomic model ⓘ representative agent model ⓘ |
| assumes |
complete markets
ⓘ
expected utility maximization ⓘ frictionless markets ⓘ infinitely lived representative agent ⓘ no arbitrage ⓘ perfect foresight in equilibrium ⓘ rational expectations ⓘ time-separable preferences ⓘ |
| coreConcept |
consumption-smoothing
ⓘ
equilibrium asset prices ⓘ equity premium ⓘ intertemporal marginal rate of substitution ⓘ pricing kernel ⓘ risk-free rate ⓘ single productive tree ⓘ state-contingent claims ⓘ stochastic discount factor ⓘ stochastic dividend stream ⓘ |
| creator | Robert E. Lucas Jr. NERFINISHED ⓘ |
| equilibriumCondition |
market clearing
ⓘ
no-arbitrage pricing ⓘ optimal consumption choice ⓘ |
| field |
asset pricing
ⓘ
financial economics ⓘ macroeconomics ⓘ |
| hasAgentType | representative agent ⓘ |
| hasAssetType | single tree equity claim ⓘ |
| hasDividendProcess | stochastic process ⓘ |
| hasGoodType | single consumption good ⓘ |
| influenced |
long-run risk models
ⓘ
modern macro-finance ⓘ real business cycle models ⓘ |
| preferenceSpecification |
CRRA utility
ⓘ
time-additive utility ⓘ |
| relatedTo |
Arrow–Debreu equilibrium
NERFINISHED
ⓘ
consumption-based CAPM ⓘ stochastic growth models ⓘ |
| timeHorizon | infinite horizon ⓘ |
| usedFor |
analyzing equity pricing in general equilibrium
ⓘ
benchmarking consumption-based asset pricing tests ⓘ deriving asset prices from consumption choices ⓘ linking macroeconomic risk to asset prices ⓘ studying risk and return trade-offs ⓘ studying the equity premium puzzle ⓘ studying the risk-free rate puzzle ⓘ |
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: Lucas tree model Description of subject: The Lucas tree model is a foundational asset-pricing framework in macroeconomics that models a representative agent’s consumption and investment decisions using a single, infinitely lived “tree” that yields a stochastic stream of dividends.
Referenced by (1)
Full triples — surface form annotated when it differs from this entity's canonical label.