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Modigliani's Expectations


  • James E. Hartley

    () (Economics Department, Mount Holyoke College)


On the one hand, Franco Modigliani does not like rational expectations. On the other hand, Franco Modigliani does like rational expectations - indeed, as he says, he invented it. Many times in his complaints, Modigliani seems to be conflating the use of the rational expectations hypothesis with the use of the market clearing hypothesis. The life-cycle model seems at first glance to have very little relationship to the business expectations and planning project.

Suggested Citation

  • James E. Hartley, 2004. "Modigliani's Expectations," Eastern Economic Journal, Eastern Economic Association, vol. 30(3), pages 427-440, Summer.
  • Handle: RePEc:eej:eeconj:v:30:y:2004:i:3:p:427-440

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    References listed on IDEAS

    1. David Neumark & Roy J. Bank & Kyle D. Van Nort, 1996. "Sex Discrimination in Restaurant Hiring: An Audit Study," The Quarterly Journal of Economics, Oxford University Press, vol. 111(3), pages 915-941.
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    JEL classification:

    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General


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