This paper develops and estimates a general equilibrium rational expectations model with search and multiple equilibria …

, expectations of higher future productivity raise the demand for new vintages of capital relative to old capital. Capital …

structure of production. Noticeably lacking, however, is a clear theory of expectations. Recent Austrian responses to rational … expectations critiques—such as positing a prisoner’s dilemma, heterogeneous entrepreneurs, and adverse selection—try to fill this … gap. But much work remains to be done developing an Austrian theory of expectations, one where they are endogenous to the …

a significant role. These episodes have revived interest in expectations driven business cycles models. However … towards addressing this limitation of expectations driven business cycle models. We propose a generalization of the Greenwood …