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This paper develops a theoretical model for the formation of subjective beliefs on individual survival expectations … survival probability whereas old respondents overestimate their survival probability. Such subjective beliefs violate the … subjective beliefs expressed in the data …
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When financial securities are modeled as claims on stochastic processes, each trader's beliefs at time can be …
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their beliefs about nationwide and own conditions. In addition, our measure of optimism makes it possible to relate an … individual's beliefs to actual outcomes. We can thereby test, in a novel way, whether entrepreneurial optimism is a behavioral … dataset (180,814 responses) that allows us to create a good measure of entrepreneurial optimism. Our measure is based on the …
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New simple forms of deviation from rational expectation (RE) are suggested: strong near rational expectation (SNRE) and weak near rational expectation (WNRE). The medium-scale DSGE model is estimated with the RE, the SNRE and the WNRE. It is estimated with and without observed from the surveys...
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