Westerhoff, Frank - In: Studies in Nonlinear Dynamics & Econometrics 10 (2007) 4, pp. 1324-1324
We modify Samuelson's multiplier-accelerator model to explore the influence of expectations on fluctuations in economic activity. Within our model, the agents use a nonlinear mix of extrapolative and regressive forecast rules to predict the output. Our model is able to mimic some generic...