Usefulness of Adaptive and Rational Expectations in Economics

This paper provides a statistical reason and strong econometric evidence for supporting the adaptive expectations hypothesis in economics. It points out why the rational expectations hypothesis was embraced by the economics profession without sufficient evidence. Finally it will summarize the conditions under which these two competing hypotheses can be used effectively.

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Year of publication:	2011-09
Authors:	Chow, Gregory C.
Institutions:	Griswold Center for Economic Policy Studies, Department of Economics
Subject:	macroeconomics \| adaptive expectations \| rational expectations

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Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	Number 1334
Classification:	E00 - Macroeconomics and Monetary Economics. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010720756