Imperfect competition and the modelling of expectations in macroeconomics

Detalhes bibliográficos
Autor(a) principal: Rankin, Neil
Data de Publicação: 2007
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10400.5/15553
Resumo: We show that when a model of the macroeconomy is based on imperfect, rather than perfect, competition, this may increase the problem of how to model agents’ expectations. We provide a simple example using an overlapping-generations economy with the potential for unemployment. Under certain assumptions about how consumers migrate between locations between the first and second periods of their lives, this extra issue regarding expectations arises. Imperfect competition may increase agents’ forecasting difficulties because they have to forecast not only future equilibrium prices, but also future out-of-equilibrium prices, and by definition the latter are never actually observed.
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spelling Imperfect competition and the modelling of expectations in macroeconomicsImperfect competition . Macroeconomics . Rationality of expectationsMacroeconomicsRationality of expectationsWe show that when a model of the macroeconomy is based on imperfect, rather than perfect, competition, this may increase the problem of how to model agents’ expectations. We provide a simple example using an overlapping-generations economy with the potential for unemployment. Under certain assumptions about how consumers migrate between locations between the first and second periods of their lives, this extra issue regarding expectations arises. Imperfect competition may increase agents’ forecasting difficulties because they have to forecast not only future equilibrium prices, but also future out-of-equilibrium prices, and by definition the latter are never actually observed.Springer VerlagRepositório da Universidade de LisboaRankin, Neil2018-06-04T08:25:30Z2007-122007-12-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/15553engRankin, Neil (2001). "Imperfect competition and the modelling of expectations in macroeconomics". Portuguese Economic Journal, 6(3):133-1501617-982X (print)10.1007/s10258-007-0020-2metadata only accessinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-03-06T14:45:29Zoai:www.repository.utl.pt:10400.5/15553Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T17:01:10.160473Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Imperfect competition and the modelling of expectations in macroeconomics
title Imperfect competition and the modelling of expectations in macroeconomics
spellingShingle Imperfect competition and the modelling of expectations in macroeconomics
Rankin, Neil
Imperfect competition . Macroeconomics . Rationality of expectations
Macroeconomics
Rationality of expectations
title_short Imperfect competition and the modelling of expectations in macroeconomics
title_full Imperfect competition and the modelling of expectations in macroeconomics
title_fullStr Imperfect competition and the modelling of expectations in macroeconomics
title_full_unstemmed Imperfect competition and the modelling of expectations in macroeconomics
title_sort Imperfect competition and the modelling of expectations in macroeconomics
author Rankin, Neil
author_facet Rankin, Neil
author_role author
dc.contributor.none.fl_str_mv Repositório da Universidade de Lisboa
dc.contributor.author.fl_str_mv Rankin, Neil
dc.subject.por.fl_str_mv Imperfect competition . Macroeconomics . Rationality of expectations
Macroeconomics
Rationality of expectations
topic Imperfect competition . Macroeconomics . Rationality of expectations
Macroeconomics
Rationality of expectations
description We show that when a model of the macroeconomy is based on imperfect, rather than perfect, competition, this may increase the problem of how to model agents’ expectations. We provide a simple example using an overlapping-generations economy with the potential for unemployment. Under certain assumptions about how consumers migrate between locations between the first and second periods of their lives, this extra issue regarding expectations arises. Imperfect competition may increase agents’ forecasting difficulties because they have to forecast not only future equilibrium prices, but also future out-of-equilibrium prices, and by definition the latter are never actually observed.
publishDate 2007
dc.date.none.fl_str_mv 2007-12
2007-12-01T00:00:00Z
2018-06-04T08:25:30Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10400.5/15553
url http://hdl.handle.net/10400.5/15553
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Rankin, Neil (2001). "Imperfect competition and the modelling of expectations in macroeconomics". Portuguese Economic Journal, 6(3):133-150
1617-982X (print)
10.1007/s10258-007-0020-2
dc.rights.driver.fl_str_mv metadata only access
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rights_invalid_str_mv metadata only access
eu_rights_str_mv openAccess
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dc.publisher.none.fl_str_mv Springer Verlag
publisher.none.fl_str_mv Springer Verlag
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
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