IDEAS home Printed from https://ideas.repec.org/a/bas/econth/y2015i2p130-152.html
   My bibliography  Save this article

Empirical test of expectations formation hypotheses: a study beyond individual rationality

Author

Listed:
  • Anton Gerunov

Abstract

We use survey data on inflation expectations in the EU-27 spanning the period 01.1998-05.2013 to test major expectations formation hypotheses against empirically observed behavior. Econometric modeling reveals that adaptive and rational expectations approaches fail to describe this process completely, whereas the evolutionary heterogeneous expectations approach seems better able to capture observed dynamics. Those results underline the importance of incorporating more behaviorally realistic models of expectations formation for the purposes of economic modeling.

Suggested Citation

  • Anton Gerunov, 2015. "Empirical test of expectations formation hypotheses: a study beyond individual rationality," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 130-152.
    • Handle: RePEc:bas:econth:y:2015:i:2:p:130-152
    as

    Download full text from publisher

    File URL: https://etj.iki.bas.bg/storage/app/uploads/public/62a/309/061/62a309061ec8f283858705.pdf
    Download Restriction: Fee access (Bulgarian)
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    JEL classification:

    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bas:econth:y:2015:i:2:p:130-152. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Diana Dimitrova (email available below). General contact details of provider: https://edirc.repec.org/data/ikbasbg.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.