The hypothesis that expectations of future values of a variable can be based primarily on its values in the recent past. Compare with rational expectations hypothesis.
- Other models of expectations formation, such as the adaptive expectations hypothesis, are briefly discussed.
- A logically consistent specification of the adaptive expectations hypothesis in continuous time is derived from an underlying discrete time model.
- The authors’ test results show that the German data are consistent with the adaptive expectations hypothesis and the Hungarian data are consistent with the rational expectations hypothesis.
Definition of adaptive expectations hypothesis in:
What do you find interesting about this word or phrase?
Comments that don't adhere to our Community Guidelines may be moderated or removed.