Diagnostic expectations and credit cycles
We present a model of credit cycles arising from diagnostic expectations – a belief formation mechanism based on Kahneman and Tversky’s (1972) representativeness heuristic. Diagnostic expectations overweight future outcomes that become more likely in light of incoming data. The expectations formatio...
| Main Authors: | , , |
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| Format: | Journal article |
| Published: |
Wiley
2018
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