Testing the Rational Expectations Hypothesis on the Retail Trade Sector Using Survey Data from Malaysia

Puah, Chin-Hong and Lee, Lucy Yun Chong and Mohamad, Jais (2011) Testing the Rational Expectations Hypothesis on the Retail Trade Sector Using Survey Data from Malaysia.

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Abstract

The rational expectations hypothesis states that when people are expecting things to happen, using the available information, the predicted outcomes usually occur. This study utilized survey data provided by the Business Expectations Survey of Limited Companies to test whether forecasts of the Malaysian retail sector, based on gross revenue and capital expenditures, are rational. The empirical evidence illustrates that the decision-makers expectations in the retail sector are biased and too optimistic in forecasting gross revenue and capital expenditures.

Item Type: Article
Uncontrolled Keywords: UNIMAS, REH, Unbiasedness, Non-serial correlation, Weak-Form Efficiency
Subjects: A General Works > AC Collections. Series. Collected works
A General Works > AC Collections. Series. Collected works

H Social Sciences > HB Economic Theory
Divisions: Academic Faculties, Institutes and Centres > Faculty of Economics and Business
Depositing User: Karen Kornalius
Date Deposited: 24 Jun 2014 07:14
Last Modified: 24 Sep 2021 06:03
URI: http://ir.unimas.my/id/eprint/3247

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