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Record W50076189

EXPECTATIONS FORMATION AND CAPACITY UTILIZATION: EMPIRICAL ANALYSES

2004· article· en· W50076189 on OpenAlexaboutno aff
Chetan Dave

Bibliographic record

VenueD-Scholarship@Pitt (University of Pittsburgh) · 2004
Typearticle
Languageen
FieldEconomics, Econometrics and Finance
TopicMonetary Policy and Economic Impact
Canadian institutionsnot available
Fundersnot available
KeywordsRationalityHeuristicsBayesian probabilityRational expectationsEconometricsConservatismConfirmation biasEconomicsBayesian inferencePsychologyCognitive psychologyPositive economicsSocial psychologyComputer scienceArtificial intelligenceEpistemologyPolitical science
DOInot available

Abstract

fetched live from OpenAlex

This dissertation consists of three empirical chapters. The first chapter examines the extent to which real-world agents are rational in making quantitative expectations, an issue over which there is much debate. In this chapter dynamic models for new plant-level survey data are estimated in order to test rationality for manufacturing plants that report expectations of capital expenditures. An advantage of such data is that rationality is tested in environments where agents may not have knowledge of each others' expectations, so strategic motives for biases or inefficiencies are minimized. Model estimates and tests suggest that weak implications of rational expectations are rejected, as are adaptive expectations. The second chapter examines expectations formation in the economists' laboratory as psychologists have documented several biases and heuristics that describe deviations from Bayesian updating-a standard assumption for economists. Indeed, Confirmation Bias predicts that individuals will exhibit systematic errors in updating their beliefs about the state of the world given a stream of information. This chapter examines this bias within a non-strategic environment that motivates experimental subjects financially to provide probability estimates that are close to those of a Bayesian. Subjects revise their estimates of the state of the world as they receive signals. Comparing their estimates to those of a Bayesian shows that subjects display conservatism by underweighting new information. In addition, subjects display confirmation bias by differentiating between confirming and disconfirming evidence. The third chapter seeks to determine, through reduced-form Phillips curves estimates and a structural model, whether the indicator relationship between capacity utilization and inflation has diminished as in recent years high levels of capacity utilization have not led to higher inflation. In Canada, the capacity utilization rate is benchmarked to survey data, thereby providing a unique opportunity to empirically analyze this macroeconomic relationship. Estimates of time-varying parameters and structural break models indicate that there have been breaks over time in the relationship. The timings of the breaks suggest that increasing competitiveness and a rules-based monetary policy may help account for the demise of the relationship. Estimates of a monopolistically competitive sticky-price model economy qualitatively lend credence to this conjecture.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

How this classification was reachedexpand

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.000
metaresearch head score (Gemma)0.000
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Observational · Consensus signal: Observational
GenreCandidate signal: Empirical · Consensus signal: Empirical
Teacher disagreement score0.103
Threshold uncertainty score0.821

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0000.000
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0000.000
Science and technology studies0.0000.000
Scholarly communication0.0000.002
Open science0.0000.000
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.359
GPT teacher head0.305
Teacher spread0.053 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it

Classification

machine, unvalidated

Machine predicted; a candidate call from one teacher head, not a consensus.

The models applied no category: nothing in the taxonomy fit this work.
Study designObservational
Domainnot available
GenreEmpirical

How this classification was reached, model by model and score by score, is at the end of the page under "How this classification was reached".

Quick stats

Citations0
Published2004
Admission routes1
Has abstractyes

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