How well do individuals predict their future life satisfaction? Rationality and learning following a nationwide exogenous shock
Over recent years a number of papers have used individual or household longitudinal survey data to investigate the rationality of income expectations. In this paper we provide a novel contribution to this literature by examining the ability of individuals to correctly predict their own future life satisfaction using longitudinal data for East Germans. The environment in which this analysis is based is the decade following reunification of Germany, and it is generally accepted that reunification...[Show more]
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