Analysing how price expectations are formed is essential since the dynamics of market prices are mainly driven by the agent's belief concerning the future values of prices and by the uncertainty characterising these values. This is a difficult task as prices are highly volatile in most markets and expectational behaviour is heterogeneous and unstable. This volume discusses the concept of rationality of expectations from both a theoretical and an empirical point of view, and on individual and collective levels. Concerning ...
Read More
Analysing how price expectations are formed is essential since the dynamics of market prices are mainly driven by the agent's belief concerning the future values of prices and by the uncertainty characterising these values. This is a difficult task as prices are highly volatile in most markets and expectational behaviour is heterogeneous and unstable. This volume discusses the concept of rationality of expectations from both a theoretical and an empirical point of view, and on individual and collective levels. Concerning the first aspect, the book focuses on how agents collect and process information and how market opinion is formed. Concerning the second aspect, the book presents studies based on individual price expectations and on the 'consensus' revealed by survey data. To appreciate the degree of generality of expectational behaviour, the contributors analyse price expectations in a variety of markets, periods and countries. Great attention is paid to financial markets which have represented the main field of analysis of expectations over the last ten years. Four main lessons stem from the works presented in this book. First, if the REH in the muthian sense seems now invalidated, this result does not mean that there is not rationality in price expectations: on the one hand, expectations may be economically rational in the sense of the advantage-cost analysis, and, on the other hand, the exchange of information between agents through the market may involve some mimetic rationalities. Second, it appears important to take into account the individual nature of expectations both at the theoretical and empirical levels: generally, the heterogeneity is not neutral in reaching an economic equilibrium or in estimating expectational processes. Third, expectational behaviour change over time: both the processes and the parameters which intervene in these processes are time-varying, especially according to the volatility of the variables. Fourth, a combination of these three basic processes appears to be successful in explaining the dynamics of expectations, although the expectational process is rather extrapolative (destabilising) when the horizon is short and rather regressive and adaptive (stabilising) when the horizon is long.
Read Less
Add this copy of Price Expectations in Goods and Financial Markets: New to cart. $125.04, good condition, Sold by Bonita rated 4.0 out of 5 stars, ships from Newport Coast, CA, UNITED STATES, published 2000 by Edward Elgar Publishing.
Add this copy of Price Expectations in Goods and Financial Markets: New to cart. $128.39, new condition, Sold by discount_scientific_books rated 5.0 out of 5 stars, ships from Sterling Heights, MI, UNITED STATES, published 2000 by Edward Elgar Publishing.
Add this copy of Price Expectations in Goods and Financial Markets to cart. $132.50, new condition, Sold by discount_scientific_books rated 5.0 out of 5 stars, ships from Sterling Heights, MI, UNITED STATES, published 2000 by Edward Elgar Publishing.
Add this copy of Price Expectations in Goods and Financial Markets to cart. $132.95, new condition, Sold by discount_scientific_books rated 5.0 out of 5 stars, ships from Sterling Heights, MI, UNITED STATES, published 2000 by Edward Elgar Publishing.
Add this copy of Price Expectations in Goods and Financial Markets: New to cart. $159.49, new condition, Sold by GreatBookPrices rated 4.0 out of 5 stars, ships from Columbia, MD, UNITED STATES, published 2000 by Edward Elgar Publishing.
Choose your shipping method in Checkout. Costs may vary based on destination.
Seller's Description:
New. Sewn binding. Cloth over boards. 320 p. Elgar Monographs. In Stock. 100% Money Back Guarantee. Brand New, Perfect Condition, allow 4-14 business days for standard shipping. To Alaska, Hawaii, U.S. protectorate, P.O. box, and APO/FPO addresses allow 4-28 business days for Standard shipping. No expedited shipping. All orders placed with expedited shipping will be cancelled. Over 3, 000, 000 happy customers.
Add this copy of Price Expectations in Goods and Financial Markets: New to cart. $159.49, like new condition, Sold by GreatBookPrices rated 4.0 out of 5 stars, ships from Columbia, MD, UNITED STATES, published 2000 by Edward Elgar Publishing.
Choose your shipping method in Checkout. Costs may vary based on destination.
Seller's Description:
Fine. Sewn binding. Cloth over boards. 320 p. Elgar Monographs. In Stock. 100% Money Back Guarantee. Brand New, Perfect Condition, allow 4-14 business days for standard shipping. To Alaska, Hawaii, U.S. protectorate, P.O. box, and APO/FPO addresses allow 4-28 business days for Standard shipping. No expedited shipping. All orders placed with expedited shipping will be cancelled. Over 3, 000, 000 happy customers.