Cobweb versus rational expectations models
A cobweb model of occupational choice is found to fit the data almost as well as a rational expectations model, even though there are large forecastable changes in demand. Striking differences, however, are revealed when we simulate the two models.
Citation
Zarkin, G. A. (1983). Cobweb versus rational expectations models. Economics Letters, 13(1), 87-95. DOI: 10.1016/0165-1765(83)90017-4
