Advanced Search
MyIDEAS: Login to save this article or follow this journal

A Comparison of the Rational Expectations and the General-to-Specific Approaches to Modelling the Demand for M1

Contents:

Author Info

  • Cuthbertson, Keith
  • Taylor, Mark P

Abstract

The issues involved in assessing the relative performance of forward-looking (rational expectations) models and backward-looking error correction models based on the general-to-specific methodology are examined. Using the demand for M1 in the United Kingdom as a specific example, the authors find that both the error correction model and the forward model perform adequately, although a version of the error correction model does encompass the forward model in a nonnested test. The authors discuss reasons why the discrimination between the two models may prove difficult in practical situations using finite data sets. Copyright 1992 by Blackwell Publishers Ltd and The Victoria University of Manchester

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

Article provided by University of Manchester in its journal The Manchester School of Economic & Social Studies.

Volume (Year): 60 (1992)
Issue (Month): 1 (March)
Pages: 1-22

as in new window
Handle: RePEc:bla:manch2:v:60:y:1992:i:1:p:1-22

Contact details of provider:
Postal: Manchester M13 9PL
Phone: (0)161 275 4868
Fax: (0)161 275 4812
Web page: http://www.socialsciences.manchester.ac.uk/disciplines/economics/
More information through EDIRC

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Ingvild Svendsen, 1998. "Rational Expectations in Price Setting. Tests Based on Norwegian Export Prices," Discussion Papers 226, Research Department of Statistics Norway.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bla:manch2:v:60:y:1992:i:1:p:1-22. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.