Generalized adaptive expectations revisited

This paper revisits the generalized adaptive expectations (GAE) mechanism presented by Shepherd (2012) [When are adaptive expectations rational? A generalization, Economics Letters, 115, 4–6]. It provides the precise conditions under which GAE hold, and also discusses its implications for the modeling of expectations in macroeconomic models.

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Year of publication:	2013
Authors:	Sorge, Marco M.
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 120.2013, 2, p. 203-205
Publisher:	Elsevier
Subject:	Adaptive expectations \| Rational expectations \| Kalman filter

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Type of publication:	Article
Classification:	C22 - Time-Series Models ; C53 - Forecasting and Other Model Applications
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010678808