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Expectations in Micro Data: Rationality Revisited

Listed author(s):
  • Hugo Benítez-Silva

    (SUNY – Stony Brook)

  • Debra S. Dwyer

    (SUNY – Stony Brook)

  • Wayne-Roy Gayle

    (University of Pittsburgh)

  • Thomas J. Muench

    (SUNY – Stony Brook)

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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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
Handle: RePEc:mrr:papers:wp059
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Phone: (734) 615-0422
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Web page: http://www.mrrc.isr.umich.edu/publications/papers/
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