Puah, Chin-Hong and Chong, Lucy Lee-Yun and Jais, Mohamad (2011): Testing the Rational Expectations Hypothesis on the Retail Trade Sector Using Survey Data from Malaysia. Published in: Journal of International Business and Economics , Vol. 11, No. 4 (October 2011): pp. 214-218.
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The rational expectations hypothesis states that when people are expecting things to happen, using the available information, the predicted outcomes usually occur. This study utilized survey data provided by the Business Expectations Survey of Limited Companies to test whether forecasts of the Malaysian retail sector, based on gross revenue and capital expenditures, are rational. The empirical evidence illustrates that the decision-makers expectations in the retail sector are biased and too optimistic in forecasting gross revenue and capital expenditures.
|Item Type:||MPRA Paper|
|Original Title:||Testing the Rational Expectations Hypothesis on the Retail Trade Sector Using Survey Data from Malaysia|
|Keywords:||REH, Unbiasedness, Non-serial Correlation, Weak-form Efficiency|
|Subjects:||D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D84 - Expectations; Speculations
L - Industrial Organization > L8 - Industry Studies: Services > L81 - Retail and Wholesale Trade; e-Commerce
C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C12 - Hypothesis Testing: General
C - Mathematical and Quantitative Methods > C2 - Single Equation Models; Single Variables > C22 - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
|Depositing User:||Chin-Hong Puah|
|Date Deposited:||17. Feb 2012 10:43|
|Last Modified:||14. Feb 2013 07:45|
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