Study week on the econometric approach to development planning

Bibliographic data

Monograph

Identifikator:: 1824422792

URN:: urn:nbn:de:zbw-retromon-217476

Document type:: Monograph

Title:: Study week on the econometric approach to development planning

Place of publication:: Amsterdam [u.a.]

Publisher:: North-Holland Publ. Co. [u.a.]

Year of publication:: 1965

Scope:: XLVII, 1259 S.; graph. Darst.

Digitisation:: 2022

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Toward a verdict on macroeconomic simultaneous equations / Herman O.A. Wold, Universitets Statistika Institution - Uppsala - Sverige

Collection:: Economics Books

YL + >SION FISHER As always, Professor WoLb has given us an interesting paper My remarks are in the nature of supplements. In the first place, I am interested in the case of bi-expecta- tional interdependent systems. As Professor Worp has shown, in this case the elasticity of demand for example becomes elasticity in terms of expected rather than actual price, where expected is interpreted as the expected value of price given by the reduced form equations. Now there is of course another sense of expectation in economics; that is the sense in which a variable is expected by people who make a decision based on it. An interesting question, it seems to me, is under what circumstances and in what types of models this will in fact be the same as the expected price given from the reduced form. Only in such circumstances will it be the case that elasticity with respect to expected price in fact is a mean- ingful parameter which describes interesting behavior. I suspect that the two coincide in a rather general framework. There is in the literature a hypothesis known as the rational expectations hypo- thesis due largely to JouN MurtH, according to which it is assumed that the decision makers who are being studied expect the values of the relevant variables to be those on the average which will be predicted by the model. MuTH has shown that this is not logically circular, Further, in this context it sounds like the sort of behavior which would lead decision makers to expect that price predicted by the reduced form + Wold - pag. 53

Access restriction

Copyright

fullscreen: Study week on the econometric approach to development planning

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation