The Norwegian export price for an aggregated commodity is modelled assuming price-setting behaviour. The focus is on the choice between backward- and forward looking models. The dynamics is modelled according to three different approaches; a backward looking error correction model and two...

The trend towards Internet self-regulation is driven both by gov-ernments that feel reluctant to invest in direct regulation (because offreedom of speech concerns or high cots of monitoring and enforce-ment) and by the industry that is under the threat of rising publicconcerns over content...

The trend towards Internet self-regulation is driven both by governments that feel reluctant to invest in direct regulation (because of freedom of speech concerns or high costs of monitoring and enforcement) and by the industry that is under the threat of rising public concerns over content...

It is known that overlapping generations models with imperfectly competitive firms may exhibit a continuum of stationary equilibria. The reason of this indeterminacy is that different price expectation functions of consumers lead to different objective demand functions against which firms...

This paper explores how market power of agents on the capital market affects economic growth and output fluctuations in an overlapping-generations model with endogenous capital accumulation. Agents interact strategically by anticipating how their savings affect the return on savings in...

Evolutionary game theory provides a fresh perspective on the prospects that agents with heterogeneous expectations might eventually come to agree on a single expectation corresponding to the efficient markets hypothesis. We establish conditions where agreement on a unique forecast is stable, but...

Using the survey data of U.S. professional forecasters, this paper assesses how their inattentiveness evolve over time and its implications for fluctuations in dispersion among their forecasts. To do so, I employ a time-varying structural VAR consisting of dispersion among forecasters and...

While ARCH/GARCH equations have been widely used to model financial market data, formal explanations for the sources of conditional volatility are scarce. This paper presents a model with the property that standard econometric tests detect ARCH/GARCH effects similar to those found in asset...

Evolutionary game theory provides a fresh perspective on the prospects that agents with heterogeneous expectations might eventually come to agree on a single expectation corresponding to the efficient markets hypothesis. We establish conditions where agreement on a unique forecast is stable, but...

I present evidence of systematically heterogeneous expectations, a violation of the Rational Expectations Hypothesis. I demonstrate that the expectations of different gender and wealth cohorts have different relative abilities to predict inflation, interest rates, unemployment, income, stock...