Positive Feedback and Path Dependence Using the Law of Large Numbers

Economists have become interested in the behavior of random processes with positive feedback but have sometimes found it difficult to introduce students to this research. Simulation of the law of large numbers with increasing amounts of feedback provides a convenient framework for such discussion and facilitates a nontechnical introduction to recent work on path dependence.

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Year of publication:	2001
Authors:	Matthews, Peter Hans
Published in:	Journal of Economic Education. - Helen Dwight Reid Foundation, ISSN 0022-0485. - Vol. 32.2001, 2, p. 124-136
Publisher:	Helen Dwight Reid Foundation
Subject:	law of large numbers \| path dependence \| positive feedback \| simulation

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Extent:	application/pdf
Type of publication:	Article
Classification:	A20 - Economics Education and Teaching of Economics. General ; C15 - Statistical Simulation Methods; Monte Carlo Methods
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005464565