Giovanni Dosi -- The Survival of the Riskiest

What is the primary focus of Giovanni's grant?

• Endogenous paths toward economic growth

• Exogenous paths toward financial shocks

• Evolutionary paths toward the financial abyss

• Evolutionary paths toward financial stability

In the context of finance, what does 'evolutionary' imply?

• A process of random mutation

• An endogenous process of adaptation

• An exogenous process of adaptation

• A process of natural selection

How do derivatives affect the financial system according to Giovanni?

• They eliminate financial shocks

• They reduce systemic risk

• They stabilize the financial system

• They allow for higher risk-taking

What does 'endogenous' mean in the context of financial shocks?

• Shocks that are unpredictable

• Shocks that are generated from within the system

• Shocks that are statistically insignificant

• Shocks that come from external sources

What was the purpose of the Budapest conference mentioned in the transcript?

• To discuss the global financial crisis

• To explore different approaches to macroeconomics

• To analyze the impact of derivatives

• To study the effects of financial shocks

What is a key feature of agent-based models in macroeconomics?

• They ignore technological capabilities

• They incorporate heterogeneity among agents

• They rely on a single representative agent

• They focus solely on equilibrium states

What was Giovanni's initial academic interest before economics?

• Mathematics

• Political science

• Sociology

• Philosophy

What motivated Giovanni to study economics?

• To understand financial markets

• To change the world

• To become a professor

• To develop new economic theories

What does Giovanni hope to achieve with his research?

• To provide advice to policymakers

• To develop new financial products

• To describe statistical regularities

• To predict economic downturns

What is a normative implication of Giovanni's agent-based work?

• Financial markets are self-correcting

• High unemployment is desirable

• Equilibrium states are always stable

• Redistributive and innovation-friendly policies are needed