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Rational Expectations (Cambridge Surveys of Economic Literature), by Steven M. Sheffrin
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Economists have developed models in which individuals form expectations of key variables in a "rational" manner such that these expectations are consistent with actual economic environments. In this revised and expanded second edition, Professor Sheffrin first explores the logical foundation of the concept and the case for employing it in economic analysis. Subsequent chapters investigate its use in macroeconomics, financial markets, and microeconomics. A final chapter assesses its impact on theoretical and empirical work in economics and policy arenas. The author argues that while rational expectations are still central to macroeconomic policy debates, fully workable models have not yet been devised, and offers reasons for the lack of practical and conceptual progress.
- Sales Rank: #1058843 in Books
- Published on: 1996-06-13
- Original language: English
- Number of items: 1
- Dimensions: 8.98" h x .47" w x 5.98" l, .59 pounds
- Binding: Paperback
- 200 pages
From the Back Cover
Professor Sheffrin first explores the logical foundation of the concept and the case for employing it in economic analysis. A final chapter assesses its impact on theoretical and empirical work in economics and policy arenas.
Most helpful customer reviews
1 of 1 people found the following review helpful.
This is a excellent introduction to Rational Expectations
By B. H. Cruz
The Sheffrin's book is excellent introduction to Rational Expectations Theory, I reviewed all the book in the PhD, the book is very clear. The book was written in non-technical language and reveals both the power and the limitations of the expectations assumption. I recommend the book.
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