#1989-001A
"Tests of Rational Expectations in a Stark Setting"
by
Gerald P. Dwyer, Jr.,
Arlington W. Williams,
Raymond C. Battalio, and
Timothy I. Mason
We test the hypothesis that forecasts by participants in a stark experimental setting are the same as the rational expectation. At least for a process as simple as a random walk, relatively sophisticated as well as relatively unsophisticated participants' forecasts can be characterized as consistent with rational expectations. More...
PUBLISHED: Economic Journal, May 1993, 103(418), pp. 586-601
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