Kowalski, Tadeusz (2002): The Simonian bounded rationality hypothesis and the expectation formation mechanism. Published in: Poznan Unversity of Economics Review , Vol. Volume, No. Number 1, 2002 (2002): pp. 5-24.
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Abstract. In the 1980s and at beginning of the 1990s the debate on expectation formation mechanism was dominated by the rational expectation hypothesis. Later on, more interest was directed towards alternative approaches to expectations analysis, mainly based on the bounded rationality paradigm introduced earlier by Herbert A. Simon. The bounded rationality approach is used here to describe the way expectations might be formed by different agents. Furthermore, three main hypotheses, namely adaptive, rational and bounded ones are being compared and used to indicate why time lags in economic policy prevail and are variable. JEL Codes: D78, D84, H30, E00.
|Item Type:||MPRA Paper|
|Original Title:||The Simonian bounded rationality hypothesis and the expectation formation mechanism|
|English Title:||The Simonian bounded rationality hypothesis and the expectation formation mechanism|
|Keywords:||Keywords: bounded rationality, substantive and procedural rationality, expectation formation, adaptive and rational expectations, time lags|
|Subjects:||D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D84 - Expectations; Speculations
H - Public Economics > H3 - Fiscal Policies and Behavior of Economic Agents > H30 - General
D - Microeconomics > D7 - Analysis of Collective Decision-Making > D78 - Positive Analysis of Policy-Making and Implementation
E - Macroeconomics and Monetary Economics > E0 - General > E00 - General
|Depositing User:||Tadeusz Kowalski|
|Date Deposited:||09. Oct 2011 13:56|
|Last Modified:||11. Feb 2013 18:45|
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