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Persistent link: https://www.econbiz.de/10009379995
Diagnostic expectations have emerged as an important departure from rational expectations in macroeconomics and finance. We present a first treatment of diagnostic expectations in linear macroeconomic models. To this end, we establish a strong additivity property for diagnostic expectations. The...
Persistent link: https://www.econbiz.de/10013241641
Diagnostic expectations have emerged as an important departure from rational expectations in macroeconomics and finance. We present a first treatment of diagnostic expectations in linear macroeconomic models. To this end, we establish a strong additivity property for diagnostic expectations. The...
Persistent link: https://www.econbiz.de/10012427488
Persistent link: https://www.econbiz.de/10015359358
Persistent link: https://www.econbiz.de/10014328771
Persistent link: https://www.econbiz.de/10014328949
Diagnostic expectations constitute a realistic behavioral model of inference. This paper shows that this approach for expectation formation can be productively integrated into the New Keynesian framework. To this end, we start by offering a first technical treatment of diagnostic expectations in...
Persistent link: https://www.econbiz.de/10013213827