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Exact Linear Rational Expectations Models: Specification and Estimation

Staff Report 71 | Published September 1, 1981

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Authors

Thomas J. Sargent New York University and Hoover Institution
Exact Linear Rational Expectations Models: Specification and Estimation

Abstract

This paper describes how to specify and estimate rational expectations models in which there are exact linear relationships among variables and expectations of variables that the econometrician observes.