Indirect Rational Expectations and Estimation in a Single Equation Macro Model

This paper makes an attempt to introduce rational expectations ideas in a single equation through a random coefficient technique. In fact, the ideas behind adaptive expectations and rational expectations have been combined here and viewed as complementary rather than . substitute to each other. We also make an attempt to provide an answer to Lucas's valid criticism of econometric policy evaluation in the presence of rational expectations.


Issue Date:
Jul 01 1988
Publication Type:
Working or Discussion Paper
Record Identifier:
http://ageconsearch.umn.edu/record/266883
Language:
English
Total Pages:
19
Series Statement:
Working Paper No. 10/88




 Record created 2018-01-22, last modified 2018-01-23

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