Definition of adaptive expectations hypothesis in English:

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adaptive expectations hypothesis


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.
Example sentences
  • 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.

For editors and proofreaders

Line breaks: adap|tive ex¦pect|ations hy¦poth|esis

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