Convergence for difference equations with vanishing time-dependence, with applications to adaptive learning

We provide conditions for local stability and instability of an equilibrium point in certain systems of nonautonomous nonstochastic difference equations. In the systems under study the influence of time is present through a positive scalar "gain" parameter which converges in the limit to zero. These systems have recently been used to study the dynamics of adaptive learning in economic models, and we provide two economic illustrations of the formal results.

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Year of publication:	2000-04-13
Authors:	Evans, George W. ; Honkapohja, Seppo
Published in:	Economic Theory. - Springer. - Vol. 15.2000, 3, p. 717-725
Publisher:	Springer
Subject:	Learning \| Stability \| Instability \| Rational expectations

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Extent:	application/pdf
Type of publication:	Article
Notes:	Received: October 7, 1997; revised version: February 8, 1999
Classification:	C62 - Existence and Stability Conditions of Equilibrium ; D83 - Search, Learning, Information and Knowledge ; D84 - Expectations; Speculations
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005371114