A method for estimating bounded price variation models with rational expectations which incorporates all information implied by rationality is applied to a model of the U.S. corn market. The results indicate that the estimated model performs at least as well as a traditional equilibrium model with naive expectations.
This working paper was published as Holt, Matthew T. and Stanley R. Johnson, "Bounded Price Variations and Rational Expectations in Endogenous Switching Model of the U.S. Corn Market," The Review of Economics and Statistics 71 (1989): 605–613, doi:10.2307/1928102.
Holt, Matthew T. and Johnson, Stanley R., "Bounded Price Variation, Rational Expectations, and Endogenous Switching in the U.S. Corn Market" (1988). CARD Working Papers. 78.