Definition of adaptive expectations hypothesis in English:

adaptive expectations hypothesis

noun

Economics
  • A hypothesis that supposes that expectations of future values of a variable can be based primarily on its values in the recent past.

    • ‘A logically consistent specification of the adaptive expectations hypothesis in continuous time is derived from an underlying discrete time model.’
    • ‘The authors’ test results show that the German data are consistent with the adaptive expectations hypothesis and the Hungarian data are consistent with the rational expectations hypothesis.’
    • ‘A complete resolution of the model is carried out under the adaptive expectations hypothesis.’
    • ‘Other models of expectations formation, such as the adaptive expectations hypothesis, are briefly discussed.’
    • ‘First approach consists in applying the adaptive expectations hypothesis while in the second approach rational expectations are assumed.’