Do financial market analysts use structural economic models when forecasting exchange rates? This is the leading question analysed in this paper. In contrast to other studies we use expectations instead of realised data. Therefore we analyse the implicit structural models forecasters have in mind when forming their exchange rate expectations. Using expected shortand long-term interest rates and...

The aim of the work is to analyze changes and behavioral features economic agents when wage rigidity incorporated into new Keynesian model in comparison with flexible wages rigid prices under cognitive constraints agents. relevance lies fact that study able describe typical movement a real business cycle. working hypothesis an assumption forecasting output gap, inflation occurs help fundamental...

A simple model of activist macroeconomic policy derives a reaction function by assuming that rational governments have performance objectives, but are constrained by the Phillips curve. Although not formally modeled, governments apply a variety of instruments to influence inflation and output, in addition to monetary policy these including fiscal policy, bailouts and exchange rates. Our econome...

This paper focuses on the continuing worldwide phenomenon of homogenisation of audit rules, regulation and procedures between the government and private sectors. The observations are informed by Pusey’s (1991) criticisms of ‘economic rationalism’ as the driving mechanism behind public sector reforms in Australia. The presumed superiority of commercial audit is questioned in association with the...

Telematics applications play an essential role in the dissemination of environmental information and environmental measures. This contribution gives an overview of the applications of environment telematics in Europe as a result of two projects which were performed on an international level. The analysis covers the situation in EC countries as well as in CEE countries, with an emphasis on regio...

Several papers have documented a regime switch in US monetary policy from ‘passive’ and destabilizing in the pre-1979 period to ‘active’ and stabilizing afterwards. These studies typically work with DSGE models with rational expectations. This paper relaxes the assumption of rational expectations and allows for learning instead. Economic agents form expectations from simple models and update th...

We explore superstitious beliefs as a basis of product performance expectations and their impact on initial purchase likelihood and subsequent satisfaction. In doing so, we demonstrate instances when superstitiondriven expectations cause consumers to make purchase decisions that run counter to economic rationality. In the first set of studies we find that Taiwanese consumers are relatively more...

In this study, we propose an exchange market model with arti cial adaptive agents (AGEDASI TOF) and conduct a computer simulation as a study on the arti cial market. First, AGEDASI TOF is compared with a random walk model and a linear regression model in out-of-sample forecasts. The results indicate that AGEDASI TOF outperforms the other models over all forecast horizons. Next, we analyze an ex...