Browsing by Subject "Rational expectations (Economic theory)"
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Item Additional econometric tests of the policy ineffectiveness proposition(Texas Tech University, 1989-08) Shammout, Luai AminThis study develops a methodology for empirically analyzing rational expectations models displaying the neutrality result and then applies it to the important question of whether anticipated monetary policy matters to the business cycle. The study contains a review of literature in rational expectations theory, as well as its policy implications. A vector autoregressive (VAR) estimation technique is employed to test the hypothesis of whether anticipated monetary policy matters. The procedure used in this study amounts to running multivariate Granger tests. However, the issue here is the predictive content of information, which is what Granger tests are really meant to analyze, and it does not involve the tricky concept and issue of economic causality. Empirical results affirm the alternative hypothesis that combines long-run monetary neutrality with the gradual adjustment of money supply in the short run. However, this study fails to combine long-run monetary neutrality with the gradual adjustment of prices. A Chow test has been performed in order to test for any structural change in the model over time. A test over two equal subperiods proves the stability of coefficients, and hence, the data can be pooled. However, a test over the post-1979 data proves that 1979 was a turning point, and hence, the economy experienced a shift in structure in 1979 which was due to changing operating procedure by the Federal Reserve System. Given this study's main results, we believe that anticipated monetary policy does matter, and hence, there is room for stabilizing monetary policy. A variety of applications to this study has been discussed, mainly in the areas of financial market behavior, interest rates and stock market prices.Item An expanded rational expectations model of intention to consume an innovative food product in a restaurant setting(Texas Tech University, 1997-12) Adams, Charles R.Icek Ajzen and Mamn Fishbein's Theory of Reasoned Acnon served as the theoretical basis for this study. An expanded version of the theory was employed to investigate the intention of consumers to consume an innovative meat product in a restaurant setting. The Expanded Rational Expectations Intention (EREI) model used two additional constructs, social acceptability and knowledge, to assist in evaluating consumer intention. The constructs in the EREI model included intention being predicted by attitude, subjective norm, knowledge, beliefs, referent others, and social acceptability. Participants in this study were a self-selected sample of Texas Tech University's faculty, staff, family, and friends. A self-report questionnaire was administered to participsmts (n=167) in the Animal Science Meat Lab Auditorium of Texas Tech. A onestep approach was used to compare the hypothesized (EREI) model to the Theory of Reasoned Action using LISREL VIII procedures. Analysis required the use of formative and reflective scales using path analysis and structural equation modeling techniques. Results indicated that the proposed EREI model was better than the rational expectations model in predicting consumer intention. Social acceptability had a significant effect on attitude and an indirect effect on intention through the mediating construct attitude. Social acceptability also had a direct effect on intention. Knowledge had no indirect or direct effect on intention. Subjective norm had an inverse relationship with intention.