As an alternative to the hypothesis of fully rational expectations, this study develops the concept of asymptotically rational expectations, and applies it in the problem of model design. Easily applied conditions are derived to ensure asymptotic rationality and several models are developed...

This article reports a dynamic demand for money function specified in differences-plus-disequilibrium form, with direct estimates of the static long-run coefficients and their "t" statistics. Unit elasticity assumptions on prices and income are tested. The recursive residuals form the basis of...