McCallum, Bennett T. - National Bureau of Economic Research (NBER) - 2009
Consider a rational expectations (RE) model that includes a relationship between variables x<sub>t</sub> and z<sub>t+1</sub>. To be considered structural and potentially useful as a guide to actual behavior, this model must specify whether x<sub>t</sub> is influenced by the expectation at t of z<sub>t+1</sub> or, alternatively, that z<sub>t+1</sub>...