Stochastic Mean-Values, Rational Expectations, and Price Movements

Numerous economic problems assume the form of finding a fixed point of a continuous self-mapping on a compact interval. We consider instances where the mapping is a parametrized expected value, and we offer an iterative scheme for locating a fixed point. The proposed method can be seen as an adaptive learning method, akin to stochastic approximation.

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Year of publication:	1998
Authors:	Flam, S.D. ; Horvath, C.
Institutions:	Institutt for Økonomi, Universitetet i Bergen
Subject:	PRICES \| LEARNING \| EXPECTATIONS

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Series:	Norway; Department of Economics, University of Bergen.
Type of publication:	Book / Working Paper
Notes:	8 pages
Classification:	C60 - Mathematical Methods and Programming. General ; C61 - Optimization Techniques; Programming Models; Dynamic Analysis
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005783545