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This paper conducts tests of the rationality of both inflation and short-term interest rate forecasts in the bond … market. These tests are developed with the theory of efficient markets and make use of security price data to infer …
Persistent link: https://www.econbiz.de/10012787455
This paper conducts tests of the rationality of both inflation and short-term interest rate forecasts in the bond … market. These tests are developed with the theory of efficient markets and make use of security price data to infer …
Persistent link: https://www.econbiz.de/10012478629
Using a novel dataset that contains qualitative firm survey data on sales forecasts as well as balance-sheet data on realized sales, we document that only major forecast errors are predictable and display autocorrelation. This result is a particular violation of the Full Information Rational...
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rationality of aggregate stock-market forecasts. The BRT algorithm endogenously selects the predictor variables used to proxy the …
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