Bounded Price Variation, Rational Expectations, and Endogenous Switching in the U.S. Corn Market
Matthew T. Holt, Stanley R. Johnson
May 1988 [88-WP 28]
A method for estimating bounded price variation models with rational expectations which incorporates all information implied by rationality is applied to a model of the U.S. corn market. The results indicate that the estimated model performs at least as well as a traditional equilibrium model with naive expectations.
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