A Structural Analysis of Expectation Formation

Marc Ivaldi

ISBN 10: 3540536655 / ISBN 13: 9783540536659

Published by Springer, J.B. Metzler Mär 1991, 1991

About this Item

This item is printed on demand - Print on Demand Titel. Neuware -This book proposes a structural analysis to study the formation of production plans and the rationality of expectations. An original procedure is developed to estimate the economic model on survey data using the theory of polychoric correlation coefficient and distribution-free estimator.Springer-Verlag KG, Sachsenplatz 4-6, 1201 Wien 248 pp. Englisch.

Seller Inventory # 9783540536659

Bibliographic Details

• Title: A Structural Analysis of Expectation Formation
• Publisher: Springer, J.B. Metzler Mär 1991
• Publication Date: 1991
• Language: English
• ISBN 10: 3540536655
• ISBN 13: 9783540536659
• Binding: Taschenbuch
• Condition: Neu
• Dimensions: 244W x 170H x 14D millimeters 244 millimeters width by 170 millimeters height by 14 millimeters depth
• Weight: 435 grams

About this title

Synopsis

Using panel data of individual firms drawn from French surveys, a structural analysis is developed to study the formation of production plans and the rationality of expectations. The production decision of a firm is defined as the optimal solution of a dynamic stochastic optimization problem. The empirical work amounts to recovering the structural parameters characterizing the model of the firm from estimates of the derived decision rule. The preceding analysis of production plans is based on the assumption that firms are rational. To justify this assumption, direct tests offer evidence that the Rational Expectations Hypothesis may not be rejected for quantity variables.