Rational expectations and econometric practice. Volume 2 / edited by Robert E. Lucas, Jr. and Thomas J. Sargent.

Format:

Book

Contributor:

Lucas, Robert E.

Sargent, Thomas J.

Language:

English

Subjects (All):

Econometrics.

Time-series analysis.

Monetary policy--Mathematical models.

Monetary policy.

Economic policy--Mathematical models.

Economic policy.

Rational expectations (Economic theory).

Physical Description:

1 online resource (xl, 689 pages) : illustrations

Edition:

1st ed.

Place of Publication:

Minneapolis : University of Minnesota Press, c1981.

Language Note:

English

Summary:

Assumptions about how people form expectations for the future shape the properties of any dynamic economic model. To make economic decisions in an uncertain environment people must forecast such variables as future rates of inflation, tax rates, government subsidy schemes and regulations. The doctrine of rational expectations uses standard economic methods to explain how those expectations are formed. This work collects the papers that have made significant contributions to formulating the idea of rational expectations.

Contents:

Contents; 4. General Applications; Investigating Causal Relations by Econometric Models and Cross-Spectral Methods; Money, Income, and Causality; Rational Expectations and the Dynamics of Hyperinflation; The Demand for Money during Hyperinflations under Rational Expectations; A Note on Maximum Likelihood Estimation of the Rational Expectations Model of the Term Structure; Estimation of Dynamic Labor Demand Schedules under Rational Expectations; Stochastic Implications of the Life Cycle-Permanent Income Hypothesis: Theory and Evidence; 5. Testing for Neutrality

A Classical Macroeconometric Model for the United States; The Observational Equivalence of Natural and Unnatural Rate Theories of Macroeconomics; Unanticipated Money Growth and Unemployment in the United States; Unanticipated Money, Output, and the Price Level in the United States; 6. Macroeconomic Control Problems; Rules Rather than Discretion: The Inconsistency of Optimal Plans; On the Time Consistency of Optimal Policy in a Monetary Economy; Estimation and Control of a Macroeconomic Model with Rational Expectations; Estimation and Optimal Control of Dynamic Game Models under Rational Expectations

Notes:

Description based upon print version of record.

Includes bibliographies.

ISBN:

0-8166-5555-3

0-8166-1071-1

OCLC:

182732667