Overreaction and diagnostic expectations in macroeconomics
We present the case for the centrality of overreaction in expectations for addressing important challenges in finance and macroeconomics. First, non-rational expectations by market participants can be measured and modeled in ways that address some of the key challenges posed by the rational expectat...
| Main Authors: | , , |
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| Format: | Journal article |
| Language: | English |
| Published: |
American Economic Association
2022
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