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Rational expectations in macroeconomics an introduction to theory and evidence by C. L. F. Attfield

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Published by Basil Blackwell in Oxford, Cambridge, Mass .
Written in English

Subjects:

  • Rational expectations (Economic theory) -- Mathematical models,
  • Macroeconomics

Book details:

Edition Notes

StatementC. L. F. Attfield, D. Demery and N. W. Duck
ContributionsDemery, David, Duck, N. W.
Classifications
LC ClassificationsHB172.5 .A86 1991
The Physical Object
Paginationx, 243 p. ;
Number of Pages243
ID Numbers
Open LibraryOL16708285M
ISBN 100631173447, 063117947X
LC Control Number91001065

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Economists have developed models in which individuals form expectations of key variables in a "rational" manner such that these expectations are consistent with actual economic environments. In this revised and expanded second edition, Professor Sheffrin first explores the logical foundation of the concept and the case for employing it in economic analysis.   Rational expectations has unquestionably become the standard way of modeling expectations in macroeconomics. Like the successful and widely-adopted first edition, this new edition is designed to explain the concept of rational expectations and its implications for by:   Rational expectations are the best guess for the future. Rational expectations suggest that although people may be wrong some of the time, on average they will be correct. In particular, rational expectations assumes that people learn from past mistakes. Rational expectations have implications for economic policy. Rational Expectations Models in Macroeconomics John B. Taylor. NBER Working Paper No. (Also Reprint No. r) Issued in November NBER Program(s):Economic Fluctuations and Growth This paper is a review of rational expectations models used in macroeconomic by:

Macroeconomics. Module Policy Applications. Search for: Rational Expectations. Learning Objectives. Explain how the theory of rational expectations means that demand management policy is ineffective; Adaptive versus Rational Expectations. The natural rate hypothesis, which we learned about in an earlier section, argues that while there may. The idea of rational expectations was first discussed by John F. Muth in However, the idea was not widely used in macroeconomics until the new classical revolution of the early s, popularized by Robert Lucas and T. Sergeant. No doubt, the theory of rational expectations is a major breakthrough in macroeconomics. The DSGE models in this book are based on the idea of RE and this is why this section introduces to the reader how to model rational expectations. Although Lucas, see [11], is credited with introducing rational expectations into macroeconomics, the idea can be . A fully expanded edition of the Nobel Prize–winning economist's classic book This collection of essays uses the lens of rational expectations theory to examine how governments anticipate and plan for inflation, and provides insight into the pioneering research for which Thomas Sargent was awarded the Nobel Prize in economics.

  The Sheffrin's book is excellent introduction to Rational Expectations Theory, I reviewed all the book in the PhD, the book is very clear. The book was written in non-technical language and reveals both the power and the limitations of the expectations assumption. I recommend the book.5/5(1). In the last decade there has been a major new development in economics – the Rational Expectations Revolution. Its supporters claim that it has permanently altered our whole approach to economics, particularly in the areas of policy‐making and forecasting. Its critics argue that it is based on wholly unrealistic ideas about the possible. This book is the first systematic development of the new statistical learning approach. Depending on the particular economic structure, the economy may converge to a standard rational-expectations or a “rational bubble” solution, or exhibit persistent learning dynamics. Rational Expectations Macroeconomics for the s? Authors: Carter, Michael, Maddock, Rodney Free Preview.