Expectations : theory and evidence /

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Bibliographic Details
Author / Creator:Holden, K.
Imprint:New York : St. Martin's Press, 1985.
Description:x, 195 p. : ill. ; 23 cm.
Subject:Rational expectations (Economic theory)
Rational expectations (Economic theory)
Format: Print Book
URL for this record:http://pi.lib.uchicago.edu/1001/cat/bib/680576
Hidden Bibliographic Details
Other authors / contributors:Peel, D.
Thompson, John L.
ISBN:0312275994 : $25.00
Notes:Includes indexes.
Bibliography: p. 177-188.
Review by Choice Review

The theory of expectations is currently one of the most active areas of economic theory. It can also be one of the most doctrinaire. For Keynesians, the government needs to manage the economy because individual expectations are faulty. For the defenders of the market, government attempts at regulating the market are supposedly ineffective at best because individual agents are so poor in anticipating the future. Finally, as information becomes more of a commodity than a public good, the theory of expectations becomes entwined with the study of the demand for information. This book is a survey of the entire field, covering the theory of rational expectations, the modeling of expectations, empirical evidence, the efficient market hypothesis, and aggregate expectations formation, all in fewer than 200 pages. A book that covers so much ground in a short space necessarily does so quickly. Tricky methods, such as lag operators or Box-Jenkins techniques, are introduced with hardly any explanation, despite the fact that the authors believe that the book is appropriate for advanced undergraduates. Like most surveys, this one is eclectic, but reasonable. This book will work as an effective supplementary text for graduate classes and as a reference work for graduate students needing an overview of the theory of expectations. Although several surveys of rational expectations exist, no other book covers expectations as a whole.-V. Perelman, California State University, Chico

Copyright American Library Association, used with permission.
Review by Choice Review