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Expectations in Micro Data: Rationality Revisited

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  • Hugo Benítez-Silva

    (SUNY – Stony Brook)

  • Debra S. Dwyer

    (SUNY – Stony Brook)

  • Wayne-Roy Gayle

    (University of Pittsburgh)

  • Thomas J. Muench

    (SUNY – Stony Brook)

Abstract

An increasing number of longitudinal data sets collect expectations information regarding a variety of future individual level events and decisions, providing researchers with the opportunity to explore expectations over micro variables in detail. We provide a theoretical framework and an econometric methodology to use that type of information to test the Rational Expectations hypothesis in models of individual behavior, and present tests using two different panel data sets.

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File URL: http://www.mrrc.isr.umich.edu/publications/Papers/pdf/wp059.pdf
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Bibliographic Info

Paper provided by University of Michigan, Michigan Retirement Research Center in its series Working Papers with number wp059.

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Length: 19 pages
Date of creation: Oct 2003
Date of revision:
Handle: RePEc:mrr:papers:wp059

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References

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Citations

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Cited by:
  1. Helen Levy & Kristin Seefeldt, 2008. "How Do Lower-Income Families Think about Retirement?," Working Papers wp195, University of Michigan, Michigan Retirement Research Center.
  2. Hugo Benitez-Silva & Huan Ni, 2007. "Health Status and Health Dynamics in an Empirical Model of Expected Longevity," Department of Economics Working Papers 07-04, Stony Brook University, Department of Economics.
  3. Beni­tez-Silva, Hugo & Ni, Huan, 2008. "Health status and health dynamics in an empirical model of expected longevity," Journal of Health Economics, Elsevier, vol. 27(3), pages 564-584, May.
  4. Hugo Benítez-Silva & Selcuk Eren & Frank Heiland & Sergi Jiménez-Martín, 2008. "How Well do Individuals Predict the Selling Prices of their Homes?," Working Papers 2008-10, FEDEA.
  5. Hugo Benitez-Silva & Huan Ni, 2005. "Health Status and Health Dynamics in an Empirical Model of Expected Longevity," Department of Economics Working Papers 05-14, Stony Brook University, Department of Economics.
  6. Benitez-Silva, Hugo & Dwyer, Debra S., 2006. "Expectation formation of older married couples and the rational expectations hypothesis," Labour Economics, Elsevier, vol. 13(2), pages 191-218, April.
  7. Kim P. Huynh & Juergen Jung, 2010. "Subjective Health Expectations," Working Papers 2010-08, Towson University, Department of Economics, revised May 2014.
  8. Beatrice Scheubel & Daniel Schunk & Joachim Winter, 2009. "Don't Raise the Retirement Age! An Experiment on Opposition to Pension Reforms and East-West Differences in Germany," CESifo Working Paper Series 2752, CESifo Group Munich.

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