Notes
1. There is an interesting related literature on Imperfect Knowledge Economics (IKE) by Frydman and Goldberg (Citation2007) and its empirical foundation based on cointegrated vector autoregressive analysis (e.g. Juselius, Citation2013) emphasizing the importance of non-stationarity, structural breaks and cointegration.
Frydman, R., & Goldberg, M. (2007). Imperfect knowledge economics: Exchange rates and risk. Princeton, NJ: Princeton University Press. Juselius, K. (2013). Imperfect knowledge, asset price swings and structural slumps. In R.Frydman & E. S.Phelps (Eds.), Rethinking expectations: The way forward for Macroeconomics (pp. 328–350). Princeton, NJ: Princeton University Press.