Stochastic Gradient Learning in the Cobweb Model.

We consider the effects of replacing least squares learning by stochastic gradient learning in the multivariate "Cobweb" model. Are the stability conditions altered? For this model, we show global convergence of stochastic gradient learning to the unique rational expectations equilibrium provided the E-stability condition is satisfied.

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Year of publication:	1998
Authors:	Evans, G.W. ; Honkapohja, S.
Institutions:	Politiikan ja Talouden Tutkimuksen Laitos, Valtiotieteellinen tiedekunta
Subject:	ECONOMETRICS \| ECONOMIC MODELS \| BOUNDED RATIONALITY

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Series:	University of Helsinki, Department of Economics.
Type of publication:	Book / Working Paper
Notes:	7 pages
Classification:	D83 - Search, Learning, Information and Knowledge ; E10 - General Aggregative Models. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005775860