Campus Units

Economics

Document Type

Article

Publication Version

Published Version

Publication Date

11-1986

Journal or Book Title

The Review of Economics and Statistics

Volume

68

Issue

4

Publisher

MIT Press

First Page or Article ID Number

603

Last Page

609

Abstract

This paper develops an empirical strategy for testing competing hypotheses of expectation regimes when direct measures of expectations are unavailable. The procedure takes as given an assumed structural relationship between expected values of exogenous variables and a given decision variable. By imposing different expectation regimes on this model, we obtain an artificial nesting of the hypothesized regimes which allows us to test whether any specification dominates. This methodology is extended to multiple equation applications with any number of hypothesized expectation regimes. The tests are illustrated using a model of the response of county-level farm acreage allocation to expected commodity prices.

Comments

This article is from The Review of Economics and Statistics, November 1986, 68(4); 603-609.

Rights

Works produced by employees of the U.S. Government as part of their official duties are not copyrighted within the U.S. The content of this document is not copyrighted.

Language

en

File Format

application/pdf

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