Abstract
Rational expectations impose cross-equation restrictions that have important implications for the estimation of models. These implications have lead to the development of new estimation and testing techniques. More recently, this development has generated techniques that handle models that cannot be solved analytically. Together with the rapid increase in computing power, these methods offer insights in to the working of these models and thereby enable their refinement.
This chapter was originally published in The New Palgrave Dictionary of Economics, 2nd edition, 2008. Edited by Steven N. Durlauf and Lawrence E. Blume
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Piazzesi, M. (2008). Rational Expectations Models, Estimation of. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95121-5_2594-1
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DOI: https://doi.org/10.1057/978-1-349-95121-5_2594-1
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Publisher Name: Palgrave Macmillan, London
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