04 Jul Rational Expectations and Learning from Experience
"Rational Expectations and Learning from Experience," Quarterly Journal of Economics Vol. 93, 1979
The burgeoning literature employing or alluding to the concept of rational expectations in time-dependent economic processes is strangely vague regarding possible mechanisms by which the economic agents could actually achieve the hypothesized "rationality." Muth (1961) assumed that the formation of expectations according to his optimality criterion would have survival value in a...