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Get Formation Of Expectations And The Expected Private Profitability Of ... - Economics Stanford

T 2009) Abstract How economic agents form their expectations is critical to understand economic outcomes, and indispensable to answer some important questions. The construction of the first transcontinental railroad is a good example. The railroad received substantial construction subsidies and turned out to be privately profitable (even after controlling for subsidies). Did entrepreneurs expect the road to be profitable or did an unexpected positive event led to profitability? The analysis per.

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