officers' expectations. Our findings suggest that the adaptive expectations mechanism is compatible with senior bank loan …

when expectations are formed by adaptive learning within a nonlinear approximation of a model. This novel approach is … applied to a standard New Keynesian model that is estimated using U.S. data. The nonlinear model with adaptive learning … improves model fit compared to the linearized model with and without adaptive learning as well as the nonlinear model with …

adaptive learning. The Galí, Smets and Wouters model is the chosen laboratory using quarterly real-time euro area data vintages …, covering 2001Q1–2019Q4. The adaptive learning model obtains better within-sample fit for all vintages used for estimation in … forecast horizon, while the adaptive learning model predicts better for the outer quarters …

The article argues that adaptive expectations play a role in deterrence and punishment by suggesting that offenders who …