. In the time series domain, this interaction emerges in a smooth version of Diagnostic Expectations (DE). Under smooth …

. In the time series domain, this interaction emerges in a smooth version of Diagnostic Expectations (DE). Under smooth …

Diagnostic expectations constitute a realistic behavioral model of inference. This paper shows that this approach for … technical treatment of diagnostic expectations in linear macroeconomic models. Diagnostic expectations generate endogenous … extrapolation in general equilibrium. We show that diagnostic expectations generate extra amplification in the presence of nominal …