Search results
Results From The WOW.Com Content Network
The expectations hypothesis of the term structure of interest rates (whose graphical representation is known as the yield curve) is the proposition that the long-term rate is determined purely by current and future expected short-term rates, in such a way that the expected final value of wealth from investing in a sequence of short-term bonds equals the final value of wealth from investing in ...
Manifest functions are the consequences that people see, observe or even expect. It is explicitly stated and understood by the participants in the relevant action. The manifest function of a rain dance, according to Merton in his 1957 Social Theory and Social Structure, is to produce rain, and this outcome is intended and desired by people participating in the ritual.
Critics of the theory argue that performance expectations could be "epiphenomenal", and do not serve as a mediator. The meta-analysis finds support for the theory (i.e., status predicts expectations, and expectations predict behavior, but status has little effect on behavior beyond that which can be attributed to expectations).
The proposition in probability theory known as the law of total expectation, [1] the law of iterated expectations [2] (LIE), Adam's law, [3] the tower rule, [4] and the smoothing theorem, [5] among other names, states that if is a random variable whose expected value is defined, and is any random variable on the same probability space, then
An affine term structure model is a financial model that relates zero-coupon bond prices (i.e. the discount curve) to a spot rate model. It is particularly useful for deriving the yield curve – the process of determining spot rate model inputs from observable bond market data.
Grounded theory can be described as a research approach for the collection and analysis of qualitative data for the purpose of generating explanatory theory, in order to understand various social and psychological phenomena. Its focus is to develop a theory from continuous comparative analysis of data collected by theoretical sampling. [4]
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. [1] Significant ...
In model theory, interpretation of a structure M in another structure N (typically of a different signature) is a technical notion that approximates the idea of representing M inside N. For example, every reduct or definitional expansion of a structure N has an interpretation in N. Many model-theoretic properties are preserved under ...