Author: Bennett T. McCallum
Publisher:
ISBN:
Category : Rational expectations (Economic theory)
Languages : en
Pages : 24
Book Description
Abstract: Consider a rational expectations (RE) model that includes a relationship between variables xt and zt+1. To be considered structural and potentially useful as a guide to actual behavior, this model must specify whether xt is influenced by the expectation at t of zt+1 or, alternatively, that zt+1 is directly influenced (via some inertial mechanism) by xt (i.e., that zt is influenced by xt-1). These are quite different phenomena. Here it is shown that, for a very broad class of multivariate linear RE models, distinct causal specifications involving both expectational and inertial influences will be uniquely associated with distinct solutionsâ?"which will result operationally from different specifications concerning which of the model's variables are predetermined. It follows that for a given structure, and with a natural continuity assumption, there is only one RE solution that is fully consistent with the model's specification. Furthermore, this solution does not involve â??sunspotâ?? phenomena
Causality, Structure, and the Uniqueness of Rational Expectations Equilibria
Author: Bennett T. McCallum
Publisher:
ISBN:
Category : Rational expectations (Economic theory)
Languages : en
Pages : 24
Book Description
Abstract: Consider a rational expectations (RE) model that includes a relationship between variables xt and zt+1. To be considered structural and potentially useful as a guide to actual behavior, this model must specify whether xt is influenced by the expectation at t of zt+1 or, alternatively, that zt+1 is directly influenced (via some inertial mechanism) by xt (i.e., that zt is influenced by xt-1). These are quite different phenomena. Here it is shown that, for a very broad class of multivariate linear RE models, distinct causal specifications involving both expectational and inertial influences will be uniquely associated with distinct solutionsâ?"which will result operationally from different specifications concerning which of the model's variables are predetermined. It follows that for a given structure, and with a natural continuity assumption, there is only one RE solution that is fully consistent with the model's specification. Furthermore, this solution does not involve â??sunspotâ?? phenomena
Publisher:
ISBN:
Category : Rational expectations (Economic theory)
Languages : en
Pages : 24
Book Description
Abstract: Consider a rational expectations (RE) model that includes a relationship between variables xt and zt+1. To be considered structural and potentially useful as a guide to actual behavior, this model must specify whether xt is influenced by the expectation at t of zt+1 or, alternatively, that zt+1 is directly influenced (via some inertial mechanism) by xt (i.e., that zt is influenced by xt-1). These are quite different phenomena. Here it is shown that, for a very broad class of multivariate linear RE models, distinct causal specifications involving both expectational and inertial influences will be uniquely associated with distinct solutionsâ?"which will result operationally from different specifications concerning which of the model's variables are predetermined. It follows that for a given structure, and with a natural continuity assumption, there is only one RE solution that is fully consistent with the model's specification. Furthermore, this solution does not involve â??sunspotâ?? phenomena
Causality, Structure, and the Uniqueness of Rational Expectations
Rational Expectations and Econometric Practice
Author: Robert E. Lucas
Publisher: U of Minnesota Press
ISBN: 0816610711
Category : Business & Economics
Languages : en
Pages : 734
Book Description
Assumptions about how people form expectations for the future shape the properties of any dynamic economic model. To make economic decisions in an uncertain environment people must forecast such variables as future rates of inflation, tax rates, governme.
Publisher: U of Minnesota Press
ISBN: 0816610711
Category : Business & Economics
Languages : en
Pages : 734
Book Description
Assumptions about how people form expectations for the future shape the properties of any dynamic economic model. To make economic decisions in an uncertain environment people must forecast such variables as future rates of inflation, tax rates, governme.
Non-uniqueness of Rational Expectations Equilibria
A Rational Expectations Equilibrium Model of the Cyclical Behavior of Employment and Inventories of Finished Goods
Author: Martin Stewart Eichenbaum
Publisher:
ISBN:
Category :
Languages : en
Pages : 338
Book Description
Publisher:
ISBN:
Category :
Languages : en
Pages : 338
Book Description
Rational Expectations Equilibria, Learning and Model Specification
Efficiency Properties of Rational Expectations Equilibria with Asymmetric Information
Author: Piero Gottardi
Publisher:
ISBN:
Category : Equilibrium (Economics)
Languages : en
Pages : 60
Book Description
Publisher:
ISBN:
Category : Equilibrium (Economics)
Languages : en
Pages : 60
Book Description
Rational Expectations
Author: Steven M. Sheffrin
Publisher: Cambridge University Press
ISBN: 9780521479394
Category : Business & Economics
Languages : en
Pages : 204
Book Description
This book develops the idea of rational expectations and surveys its use in economics today.
Publisher: Cambridge University Press
ISBN: 9780521479394
Category : Business & Economics
Languages : en
Pages : 204
Book Description
This book develops the idea of rational expectations and surveys its use in economics today.
Rational Expectations
Author: Graham Keith Shaw
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 150
Book Description
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 150
Book Description
New Keynesian Economics: Coordination failures and real rigidities
Author: N. Gregory Mankiw
Publisher: MIT Press
ISBN: 9780262631341
Category : Business & Economics
Languages : en
Pages : 468
Book Description
New keynesian economics/ed. by N. Gregory Mankiw.-v.1
Publisher: MIT Press
ISBN: 9780262631341
Category : Business & Economics
Languages : en
Pages : 468
Book Description
New keynesian economics/ed. by N. Gregory Mankiw.-v.1