Expectations in Micro Data: Rationality Revisited

Authors

• Hugo Benítez-Silva
• Debra Sabatini Dwyer

Abstract

An increasing number of longitudinal data sets collect expectations information regarding a variety of future individual level events and decisions, providing researchers with the opportunity to explore expectations over micro variables in detail. We provide a theoretical framework and an econometric methodology to use that type of information to test the Rational Expectations hypothesis in models of individual behavior, and present tests using two different panel data sets.

Citation

This MRRC working paper was subsequently published as:

Benítez Silva, Hugo A. Debra S. Dwyer,Wayne-Roy Gayle, and Tom Muench. “Expectations in Micro Data: Rationality Revisited.” Empirical Economics. Volume 34, Number 2, March, 2008.

Full Text

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Project

• UM02-11: Dynamic Retirement Expectations using the Health and Retirement Study

Paper ID

WP 2003-059

Publication Type

Working Paper

Publication Year

2003