Archive
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Working Paper
Working Paper SeriesWhy Diagnostic Expectations Cannot Replace REH
Jan 2022
A formal argument that Kahneman and Tversky’s compelling empirical findings, and those of other behavioral economists, do not provide a basis for a general approach to specifying participants’ “predictable errors.”
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Working Paper
Working PaperMarket Participants Neither Commit Predictable Errors nor Conform to REH
Sep 2021
Evidence from Survey Data of Inflation Forecasts
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Working Paper
Working paperRethinking the Role of the Representativeness Heuristic in Macroeconomics and Finance Theory
Dec 2020
Even if psychological factors influence participants’ decision-making, as behavioral economists compellingly argue, incorporating such factors into economic theory would seem to require that market participants adhere to elementary logical rules.