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Ignorance may be optimal? Some welfare implications of rational versus non-rational expectations

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  • Holmes, James M.
  • Dowd, Michael R.
  • Black, David C.

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  • Holmes, James M. & Dowd, Michael R. & Black, David C., 1995. "Ignorance may be optimal? Some welfare implications of rational versus non-rational expectations," Journal of Macroeconomics, Elsevier, vol. 17(3), pages 377-386.
    • Handle: RePEc:eee:jmacro:v:17:y:1995:i:3:p:377-386
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    References listed on IDEAS

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    1. Nielsen, Michael Teit, 1988. "The Pareto domination of irrational expectations over rational expectations," Journal of Economic Theory, Elsevier, vol. 46(2), pages 322-334, December.
    2. Benassy, Jean-Pascal, 1991. "Incomplete markets and the suboptimality of rational expectations," Economics Letters, Elsevier, vol. 36(4), pages 343-346, August.
    3. Bray, Margaret, 1982. "Learning, estimation, and the stability of rational expectations," Journal of Economic Theory, Elsevier, vol. 26(2), pages 318-339, April.
    4. Williams, Arlington W, 1987. "The Formation of Price Forecasts in Experimental Markets," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 19(1), pages 1-18, February.
    5. Balvers, Ronald J & Cosimano, Thomas F, 1990. "Actively Learning about Demand and the Dynamics of Price Adjustment," Economic Journal, Royal Economic Society, vol. 100(402), pages 882-898, September.
    6. Camerer, Colin & Loewenstein, George & Weber, Martin, 1989. "The Curse of Knowledge in Economic Settings: An Experimental Analysis," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1232-1254, October.
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