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A Second Edition of the General Theory

Is there a place for rational expectations in keynes’s general theory?

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Hoover, KD
January 1, 2006

Keynes distinguishes between long-term and short-term expectations (G. T.: 46-7). The distinction mirrors Marshall's distinction between the long run, in which factors of production are all variable, and the short run, in which the firm's capital equipment is fixed. Keynes argues that an entrepreneur consults his long-term expectations in determining the amount of his investment in plant and machinery, and consults his short-term expectations in determining the scale of his current output.

Duke Scholars

DOI

Publication Date

January 1, 2006

Start / End Page

219 / 237
 

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Hoover, K. D. (2006). Is there a place for rational expectations in keynes’s general theory? In A Second Edition of the General Theory (pp. 219–237). https://doi.org/10.4324/9780203980316-28
Hoover, K. D. “Is there a place for rational expectations in keynes’s general theory?” In A Second Edition of the General Theory, 219–37, 2006. https://doi.org/10.4324/9780203980316-28.
Hoover KD. Is there a place for rational expectations in keynes’s general theory? In: A Second Edition of the General Theory. 2006. p. 219–37.
Hoover, K. D. “Is there a place for rational expectations in keynes’s general theory?A Second Edition of the General Theory, 2006, pp. 219–37. Scopus, doi:10.4324/9780203980316-28.
Hoover KD. Is there a place for rational expectations in keynes’s general theory? A Second Edition of the General Theory. 2006. p. 219–237.

DOI

Publication Date

January 1, 2006

Start / End Page

219 / 237