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Rational Expectations in an Econometric Model: Niesr Model 8∗

Published online by Cambridge University Press:  26 March 2020

S.G. Hall  and
S.G.B. Henry
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Abstract

This article summarises research on the role of forward-looking behaviour in important sectors of a macro-econometric model. It is based on the work of a number of researchers at the National Institute over the last two years. Important changes are introduced into many central equations in the model We argue that on grounds of both the underlying theory and the plausibility of the empirical results, this work is a significant advance in explaining dynamic macro-economic behaviour.

Type
Articles
Information
National Institute Economic Review , Volume 114 , November 1985 , pp. 58 - 68
Copyright
Copyright © 1985 National Institute of Economic and Social Research

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Footnotes

∗

Thanks are due to Andrew Britton, Simon Wren-Lewis and an anonymous referee for comments on an earlier draft. Financial support by the ESRC for this research is gratefully acknowledged.

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