Milani, Fabio; Rajbhandari, Ashish - Department of Economics, University of California-Irvine - 2012
learning, and observed subjective expectations from surveys. The results show that the econometric evaluation of the model is … best-fitting specifications, however, are those that assume learning. Expectations also have large effects on forecasting …. Survey expectations, news, and learning all work to improve the model's one-step-ahead forecasting accuracy. Rational …