This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Tests of the Rational Expectations Hypothesis

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Lovell, Michael C

Additional information is available for the following registered author(s):

Abstract

This paper reviews evidence on the structure of anticipation from a number of empirical studies. Jack Muth's "rational expectations hypothesis" is compared with a variety of alternative models, including Ferber's Law, the "implicit expectations" model of Edwin Mills, and Muth's new "errors in the variables" model. The cumulative evidence is of such strength as to compel the suspension of belief in the concept of rational expectations. This implies that it is a mistake to proceed under the maintained hypothesis that expectations are rational; instead, it is necessary to test the sensitivity of empirical and theoretical results to alternative assumptions about the structure by which anticipations are generated. Copyright 1986 by American Economic Association.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help file. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://links.jstor.org/sici?sici=0002-8282%28198603%2976%3A1%3C110%3ATOTREH%3E2.0.CO%3B2-7&origin=repec
File Format: application/pdf
File Function: full text
Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Publisher Info
Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 76 (1986)
Issue (Month): 1 (March)
Pages: 110-24
Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Handle: RePEc:aea:aecrev:v:76:y:1986:i:1:p:110-24

Contact details of provider:
Email:
Web page: http://www.aeaweb.org/aer/
More information through EDIRC

Order Information:
Web: http://www.aeaweb.org/subscribe.html

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

Related research
Keywords:

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.
Statistics
Access and download statistics

Did you know? IDEAS was sponsored from 1997 to 2002 by the Université du Québec à Montréal.

This page was last updated on 2008-9-19.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.