- ability-to-pay principle
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- Allais paradox
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- consumer surplus
- contestable markets theory
- continuity thesis
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- convergence theory
- core, theory of the
- corporatism
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- cost-push inflation
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- DeLorean theory
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- exploitation
- externalities
- factor-price equalization theorem
- falling rate of profit
- fine tuning
- firm, theory of the
- fixed point theorems
- forced saving
- free banking theory
- free rider problem
- fundamental disquilibrium
- game theory
- general equilibrium theory
- general strike
- general theory of employment, interest and money
- Gibrat's rule of proportionate growth
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- historical materialism
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- human capital theory
- imperfect competition
- imperialism
- impossibility theorem
- income determination, theory of
- income distribution, theory of
- information theory
- input-output analysis
- insider-outsider wage determination
- internal and external balance
- invisible hand
- iron law of wages
- IS-LM model
- just price
- Keynesian economics
- Kondratieff cycles
- labor force participation
- labor market discrimination
- labor theory of value
- Laffer curve
- laissez-faire
- large numbers, law of
- Le Chatelier principle
- learning-by-doing
- least cost location theory
- Leontief paradox
- life-cycle hypothesis
- Lindahl equilibrium
- linear programming
- loanable funds theory of the rate of interest
- long wages
- lump-of-labor theory of wages
- Lyapunov's theorem
- machinery question
- Malthusian population theory
- managerial theories of the firm
- marginal efficiency of capital
- marginal productivity theory of distribution
- marginal utility theory
- market socialism
- markets, law of
- Marshall-Lerner principle
- Marxism
- material balances principle
- measure theory
- mercantilism
- Modigliani-Miller theory of the cost of capital
- monetarism
- monopolistic competition
- monopoly
- monopoly capitalism
- moral hazard
- multiplier
- multiplier-accelerator
- NAIRU
- NARU
- Nash equilibrium
- national income
- nationalization
- natural and warranted rates of growth
- natural monopoly of economics
- natural rate of unemployment
- negative income tax
- neo-classical growth theory
- neo-classical theory
- neo-Ricardian theory
- new class
- new classical macroeconomics
- non-accelerating inflation rate of unemployment
- non-competing groups
- non-nested hypothesis
- non-profit organization
- occupation segregation
- Okun's law
- oligopoly theory
- opportunity cost
- optimal tariff theory
- option pricing theory
- organization theory
- own rate of interest
- paradox of thrift
- paradox of value
- paradox of voting
- Pareto efficiency
- Pareto optimality
- partial equilibrium theory
- peak-load pricing
- perfect competition
- permanent income hypothesis
- Phillips curve
- Physiocracy
- Pigou effect
- political business cycle
- portfolio selection theory
- Prebisch-Singer thesis
- price discrimination
- privatization
- product life-cycle theory
- production, theory of
- profits, theories of
- property
- public choice
- public utility pricing
- purchasing power parity
- quantity theory of money
- queuing theory
- Ramsey pricing
- random walk hypothesis
- rational expectations theory
- rationing
- Rawls theory of justice
- Reaganomics
- real bills doctrine
- regulation
- regulatory capture
- relative income hypothesis
- rent seeking
- returns to scale
- revealed preference theory
- Ricardian equivalence theorem
- roundabout method of production
- Rybczynski theorem
- satisficing
- Say's law
- Scitovsky paradox
- screening hypothesis
- search theory
- second best, theory of
- secular stagnation theory
- segmented labor market theory
- shadow pricing
- signalling
- Slutsky's theorem
- small is beautiful principle
- social welfare function
- Solow economic growth
- specie-flow mechanism
- St Petersburg paradox
- stationary state
- stock-flow analysis
- structure-conduct-performance theory
- substitution theory
- sunspot theory
- supply-side economics
- surplus value
- syndicalism
- tax incidence
- technological gap theory
- term structure of interest rates
- Thatcherism
- Tiebout hypothesis
- time preference theory of interest
- trade cycle
- trickle-down theory
- turnpike theory
- uncertainty
- underconsumption theory
- unemployment
- variable proportions, law of
- vent for surplus
- Verdoorn's law
- wages fund doctrine
- Wagner's law
- Walras's stability
- Weber's theory of the location of the firm
- Wicksell's theory of capital
- x-efficiency
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Rational Expectations Theory
(1960)
Formulated by American economist John Muth (1930- ), rational expectations theory states that individuals and companies, acting with complete access to the relevant information, forecast events in the future without bias.
Errors in their forecasts are assumed to result from random events.
Rational expectations theory has emerged as an important aspect of new classical economics.
Also see: adaptive expectations, random walk hypothesis, new classical macroeconomics
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