Social and Behavioral Sciences Commons^™

A New Approach To Expectation Theory: Rationality Revisited, Tamas Forgacs

Masters Theses

Expectations play an important role in economics. Traditionally two major branches of expectation theory are distinguished: that of adaptive and rational expectations. This study sets out the goal of investigating inflationary expectations based on real world experiences. The model proposed and tested here abandons the traditional fixed-time-interval-update models for a non-fixed-time-interval-update model. Although the penalty function attached to each error is still subject to debate, it is shown that by reacting with faster updates to errors in expectations economic agents achieve more precise expectations compared to those of a fix time interval update model. We also find the model rational …

The Effect Of Increases In Labor Supply On Real Wages, Christopher M. Jahnke

Masters Theses

The working class citizen is an important part of the United States. However, the manufacturing worker is getting paid less in real terms now, than in 1975. Because of this, working harder for less has become the battle cry of the blue collar worker. This study is focused on examining the decline in average real hourly wage in manufacturing.

The hypothesis of this paper is that large increases in female labor force participation rates have caused average real wages to fall since 1966. This hypothesis is examined through multiple regression analysis based on a model with three independent variables. The …