Adam, Klaus (contributor); Evans, George W. (contributor); … - 2003
convergence to REE is precluded. In this paper we allow for intrinsic random shocks
and thus use “decreasing gain” algorithms … approximation theory can be applied to show
convergence of least squares learning when the PLM of the agents has AR(1)
form and the … based on
H
t
by E
∗
t
[·].
With the relevant economic expectations given by the average expecta-
tions across agents, the …