Please use this identifier to cite or link to this item:
https://hdl.handle.net/10419/21442
Full metadata record
DC Field | Value | Language |
---|---|---|
dc.contributor.author | Frijters, Paul | en |
dc.contributor.author | Haisken-DeNew, John P. | en |
dc.contributor.author | Shields, Michael A. | en |
dc.date.accessioned | 2009-01-28T16:22:27Z | - |
dc.date.available | 2009-01-28T16:22:27Z | - |
dc.date.issued | 2002 | - |
dc.identifier.uri | http://hdl.handle.net/10419/21442 | - |
dc.description.abstract | In this paper we test the Rational Expectations hypothesis using longitudinal data on expectations and realizations of individual welfare for East Germans in the years following reunification. German reunification was unexpected and delivered a large shock to the future prospects of the inhabitants of the former East Germany. We therefore take it as a 'natural' experiment through which to study the rationality of expectations. Our results show that EastGermans significantly over-estimated the welfare gains immediately following reunification. The prediction error was largest for the young, the poorly educated and those with children. However, expectations and realizations of life satisfaction in East Germany had converged by 1995, at a level considerably below that of West Germans. We hence conclude thatexpectations were close to rational after the dust of reunification had settled, but that expectations are not likely to be rational in times of great transition or volatility. | en |
dc.language.iso | eng | en |
dc.publisher | |aInstitute for the Study of Labor (IZA) |cBonn | en |
dc.relation.ispartofseries | |aIZA Discussion Papers |x498 | en |
dc.subject.jel | Z1 | en |
dc.subject.jel | I31 | en |
dc.subject.jel | C25 | en |
dc.subject.jel | C23 | en |
dc.subject.ddc | 330 | en |
dc.subject.keyword | welfare | en |
dc.subject.keyword | life satisfaction | en |
dc.subject.keyword | rational expectations | en |
dc.subject.keyword | learning | en |
dc.subject.keyword | German reunification | en |
dc.subject.stw | Lebensstandard | en |
dc.subject.stw | Lebensqualität | en |
dc.subject.stw | Rationale Erwartung | en |
dc.subject.stw | Lernprozeß | en |
dc.subject.stw | Schätzung | en |
dc.subject.stw | Neue Bundesländer | en |
dc.subject.stw | Nationale Einheit | en |
dc.subject.stw | Deutschland | en |
dc.subject.stw | Lebenszufriedenheit | en |
dc.title | Individual Rationality and Learning: Welfare Expectations in East Germany Post-Reunification | - |
dc.type | Working Paper | en |
dc.identifier.ppn | 845569325 | en |
dc.rights | http://www.econstor.eu/dspace/Nutzungsbedingungen | en |
Files in This Item:
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.