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The rational expectations assumption, e.g. in life-cycle models and portfolio-choice models, prescribes agents to have model-consistent beliefs and to avoid systematic prediction errors. In reality, justi cation and identification of expectations are nontrivial. One way to solve this problem is...
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We assess the relevance of formal education for the productivity of the self-employed and distinguish between … employment options. We expect differences in the returns to education between these groups because of different levels of control …. We use the German Socio-economic Panel and account for the endogeneity of education and non-random selection. The results …
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