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dc.contributor.authorLiu, Chunpingen_US
dc.contributor.authorMinford, Patricken_US
dc.description.abstractThe banking crisis has caused a resurgence of interest in behavioural models of expectations in macroeconomics. Here we evaluate behavioural and rational expectations econometrically in a New Keynesian framework, using US post-war data and the method of indirect inference. We find that after full re-estimation the model with behavioural expectations is strongly rejected by the data, whereas the standard rational expectations version passes the tests by a substantial margin.en_US
dc.publisherCardiff University, Cardiff Business School Cardiffen_US
dc.relation.ispartofseriesCardiff Economics Working Papers E2012/21en_US
dc.subject.keywordbehavioural expectationen_US
dc.subject.keywordrational expectationen_US
dc.subject.keywordbank crisisen_US
dc.subject.keywordindirect inferenceen_US
dc.titleComparing behavioural and rational expectations for the US post-war economyen_US
dc.typeWorking Paperen_US
Appears in Collections:Cardiff Economics Working Papers, Cardiff Business School, Cardiff University

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