A growing literature uses now widely available data on beliefs and expectations in the estimation of structural models. In this chapter, we review this literature, with an emphasis on models of individual and household behavior. We first show how expectations data have been used to relax strong...

A growing literature uses now widely available data on beliefs and expectations in the estimation of structural models. In this chapter, we review this literature, with an emphasis on models of individual and household behavior. We first show how expectations data have been used to relax strong...

Causality is a notion that occurs often in economics. In using the words ‘cause’ and ‘effect,’ economists seek to distinguish causation from association, recognizing that causes are responsible for producing effects, whereas noncausal associations are not. The identification of causes is...