models of expectations formation, survey data, heterogeneity, tests of rational expectations

Publication date: 29 Jul 2005 | Publication type: NIESR Discussion Paper | Authors: Weale, M | External authors: M. Hashem Pesaran | JEL classification: C40, C50, C53, C80 | NIESR discussion paper number: 260
This paper focusses on survey expectations and discusses their uses for testing and modeling of expectations. Alternative models of expectations formation are reviewed and the importance of allowing for heterogeneity of expectations is emphasized. A weak form of the rational expectations hypothesis...