When.com Web Search

Search results

  1. Results From The WOW.Com Content Network
  2. Rational expectations - Wikipedia

    en.wikipedia.org/wiki/Rational_expectations

    The concept of rational expectations was first introduced by John F. Muth in his paper "Rational Expectations and the Theory of Price Movements" published in 1961. Robert Lucas and Thomas Sargent further developed the theory in the 1970s and 1980s which became seminal works on the topic and were widely used in microeconomics.

  3. Robert Lucas Jr. - Wikipedia

    en.wikipedia.org/wiki/Robert_Lucas_Jr.

    Lucas (1972) incorporated the idea of rational expectations into a dynamic macroeconomic models. The agents in Lucas's model are rational: based on the available information, they form expectations about future prices and quantities, and based on these expectations they act to maximize their expected lifetime utility. [18]

  4. John Muth - Wikipedia

    en.wikipedia.org/wiki/John_Muth

    He is "the father of the rational expectations revolution in economics", primarily due to his article "Rational Expectations and the Theory of Price Movements" from 1961. Muth earned his PhD in mathematical economics from Carnegie Mellon University, and was in 1954 the first recipient of the Alexander Henderson Award. He was affiliated with ...

  5. Thomas J. Sargent - Wikipedia

    en.wikipedia.org/wiki/Thomas_J._Sargent

    Sargent's main contributions to rational expectations were these: trace the implications of rational expectations, with Wallace, for alternative monetary-policy instruments and rules on output stability and price determinacy. [11] help make the theory of rational expectations statistically operational. [12]

  6. Policy-ineffectiveness proposition - Wikipedia

    en.wikipedia.org/wiki/Policy-ineffectiveness...

    The policy-ineffectiveness proposition (PIP) is a new classical theory proposed in 1975 by Thomas J. Sargent and Neil Wallace based upon the theory of rational expectations, which posits that monetary policy cannot systematically manage the levels of output and employment in the economy.

  7. Stock market prediction - Wikipedia

    en.wikipedia.org/wiki/Stock_market_prediction

    The efficient market hypothesis posits that stock prices are a function of information and rational expectations, and that newly revealed information about a company's prospects is almost immediately reflected in the current stock price. This would imply that all publicly known information about a company, which obviously includes its price ...

  8. Lucas islands model - Wikipedia

    en.wikipedia.org/wiki/Lucas_islands_model

    The Lucas islands model is an economic model of the link between money supply and price and output changes in a simplified economy using rational expectations. It delivered a new classical explanation of the Phillips curve relationship between unemployment and inflation. The model was formulated by Robert Lucas, Jr. in a series of papers in the ...

  9. Random walk model of consumption - Wikipedia

    en.wikipedia.org/wiki/Random_walk_model_of...

    Robert Hall was the first to derive the effects of rational expectations for consumption. His theory states that if Milton Friedman’s permanent income hypothesis is correct, which in short says current income should be viewed as the sum of permanent income and transitory income and that consumption depends primarily on permanent income, and if consumers have rational expectations, then any ...