An exploration of the eductive justifications of the rational-expectations hypothesis

Article Abstract:

Modern economic theory revolves around the rational-expectations hypothesis. Justifications can be classified as either eductive explanations, which rely on logic and forecasts, or evolutive explanations, which rely on more of an ad hoc process. Predictability increases when product diversification increases and when suppliers follow a sequential decision-making process.

Models, Economic aspects, Rational expectations (Economics), Justification (Theory of knowledge), Justification (Epistemology)

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Coordination on saddle-path solutions; the eductive viewpoint - linear multivariate models

Article Abstract:

A study examining the local strong rationality (LSR) in multivariate models, which are both forward-looking expectations and predetermined variables, is presented. The eductive stability condition for the LSR, is also obtained. In the case of the saddle-path solution is LSR, provided the model is structurally homogenous across agents.

Analysis, Multivariate analysis, Linear models (Statistics)

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Recursive utility and optimal growth with bounded or unbounded returns

Article Abstract:

An approach to study the economic problems on the basis of a utility function, using recursive economic models is described. The model is used to modify the dynamic programming with Recursive utility and optimal growth, allowing for both bounded and unbounded returns.

Innovations, Evaluation, Dynamic programming, Utility theory, Utility functions, Recursion theory, Econometric models

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