Hommes, Cars H.; Mavromatis, Kostas; Özden, Tolga; Zhu, Mei - 2022
DSGE models. In a BLE, boundedly rational agents use simple but optimal first-order autoregressive (AR(1)) forecasting … Wouters (2007) model. A horse race between rational expectations equilibrium (REE), BLE and constant gain learning models … shows that the BLE model outperforms the REE benchmark and is competitive with constant gain learning models in terms of in …