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A hypothesis that supposes that expectations of future values of a variable can be based primarily on its values in the recent past.Compare with rational expectations hypothesis
- ‘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.’
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