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A framework which allows for the joint testing of the adaptive and rational expectations hypotheses is presented. We assume joint normality of expectations, realizations and variables in the information set, allowing for parsimonious interpretation of the data; conditional first moments are...

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Businessmen's expectations are neither rational nor adaptive

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How do entrepreneurial portfolios respond to income taxation?

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We investigate how personal income taxes affect the portfolio share of personal wealth that entrepreneurs invest in … into entrepreneurship, we use changes in entry regulation into skilled trades. Estimation results are consistent with the …

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