Rational expectations in a macromodel : an empirical study

Abstract

This study deals with rational expectations in a macromodel framework on an empirical level. The aim of this study is to analyze the effects of rational expectations in an empirical macromodel. If one tries to scrutinize the aim of this study in questions to be answered, those questions would include the following: How should the ,expectations be modelled in a macromodel framework? What are the reasons for adding rational expectations into the model? How do different forms of expectation formation hypothesis affect the outcome of policy simulations in a macromodel? What are the special features of the policy simulations with rational expectations model?