An adequate theory of inference generation should accurately predict whether particular classes of knowledge-based inferences are generated "on-line" during text comprehension. This article proposes a theory which can account for available empirical findings in cognitive psychology and discourse processing, including those reported in this issue Discourse Processes. The proposed "constructionist" theory incorporates: (a) the goals of the reader, (b) explanations of why actions and events in the text occur, (c) coherence at local and global levels, and (d) the activation of inferences from multiple information sources.

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