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- W2053643732 abstract "In many contexts, individual agents' behavior depends on their expectations of other agents' expectations, about which there is no available source of objective information. Standard rational expectations models have avoided, not resolved, this problem. This paper models an alternative approach involving asymmetric adjustment in response to exogenous shocks. This is applied to a model of overlapping wage contracts and causes wages to fall slower in response to deflationary shocks than they rise in response to expansionary shocks. This contrasts with standard overlapping contract models incorporating rational expectations in which adjustment is symmetric. Copyright 1988 by The London School of Economics and Political Science." @default.
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- W2053643732 date "1988-08-01" @default.
- W2053643732 modified "2023-09-24" @default.
- W2053643732 title "Expectations and Adjustment: An Alternative Approach with an Application to Overlapping Wage Contracts" @default.
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- W2053643732 doi "https://doi.org/10.2307/2554015" @default.
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