Resuscitating the cobweb cycle

Abstract

This article shows that permanent fluctuations in the cobweb model-though inconsistent with a rational expectations equilibrium-can be justified as being rational when reinterpreting the model in the theory of rational beliefs. Copyright © 2004 John Wiley & Sons, Ltd.

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Research Papers in Economics

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Last time updated on 06/07/2012

This paper was published in Research Papers in Economics.

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