Are Investment Expectations Rational, Adaptive or Regressive?

A unique previously unavailable dataset is employed to study the nature of expectations formed by manufacturing plants as they plan their own capital expenditures. Both conventional rational expectations and adaptive expectations hypotheses are found to be inconsistent with the data, which instead f...

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Detalles Bibliográficos
Publicado en:Economic Inquiry Vol. 49; no. 1; pp. 212 - 226
Autor principal: Dave, Chetan
Formato: Artículo
Publicado: Wiley-Blackwell January 2011
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Are Investment Expectations Rational, Adaptive or Regressive?
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        au: Dave, Chetan
      su:
        Economic expectations
        Mathematical models of capital investments
        Manufacturing industries
        Canada
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          Canada
          Economic expectations
          Mathematical models of capital investments
          Manufacturing industries
      ab: A unique previously unavailable dataset is employed to study the nature of expectations formed by manufacturing plants as they plan their own capital expenditures. Both conventional rational expectations and adaptive expectations hypotheses are found to be inconsistent with the data, which instead favor a regressive expectations formation process. These results, obtained using real-world data on plants, further develop the growing recent literature on survey expectations and the information about economic models that can be gleaned from them. (JEL E22, C23, C83) Reprinted by permission of the publisher.
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    language: English
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