Search Results - subject:"Adaptive Learning"

Hommes, Cars; Zhu, Mei - 2013

We propose behavioral learning equilibria as a plausible explanation of coordination of individual expectations and aggregate phenomena such as excess volatility in stock prices and high persistence in inflation. Boundedly rational agents use a simple univariate linear forecasting rule and...

Persistent link: https://www.econbiz.de/10010326517

Estimating Structural Parameters in Regression Models with Adaptive Learning

Christopeit, Norbert; Massmann, Michael - 2013

parameters in a stylised macroeconomic model in which agents are boundedly rational and use an adaptive learning rule to form …

Persistent link: https://www.econbiz.de/10010326519

Promoting coordination in summary-statistic games

Erharter, Dominik - 2013

This paper studies how external incentives can help agents to coordinate in summary-statistic games. Agents follow a myopic best-reply rule and face a trade-off between efficiency and strategic uncertainty. A principal can help agents to coordinate on the Pareto optimal equilibrium by monitoring...

Persistent link: https://www.econbiz.de/10010397174

Behavioral Learning Equilibria

Hommes, Cars; Zhu, Mei - Tinbergen Instituut - 2013

This discussion paper led to an article in 'Journal of Economic Theory' (2014). Volume 150, pp. 778-814.<P> We propose behavioral learning equilibria as a plausible explanation of coordination of individual expectations and aggregate phenomena such as excess volatility in stock prices and high...</p>

Persistent link: https://www.econbiz.de/10011257225

Learning and the Size of the Government Spending Multiplier.

QUAGHEBEUR, E. - Faculteit Economie en Bedrijfskunde, Universiteit Gent - 2013

adaptive learning scheme. The learning mechanism is such that the agents forecast future values of forward-looking variables … small-scale new Keynesian DSGE model with this adaptive learning mechanism crowds in private consumption and is associated … expectations. These results are robust to a richer specification, irrespective of the financing strategy. An alternative adaptive …

Persistent link: https://www.econbiz.de/10011083100

Explaining Price Dispersion and Dynamics in Laboratory Bertrand Markets

Bayer, Ralph-C; Wu, Hang; Chan, Mickey - School of Economics, University of Adelaide - 2013

This paper develops a quantal-response adaptive learning model which combines sellers' bounded rationality with …

Persistent link: https://www.econbiz.de/10011186675

Optimal consumption under uncertainty, liquidity constraints, and bounded rationality

Özak, Ömer - Southern Methodist University, Department of Economics - 2013

under uncertainty and liquidity constraints. Using an empirically plausible theory of learning I propose a class of adaptive … learning algorithms that agents might use to choose a consumption rule. I show that the algorithm always has a globally …

Persistent link: https://www.econbiz.de/10011003226

Anticipation, Learning and Welfare: the Case of Distortionary Taxation

Gasteiger, Emanuel; Zhang, Shoujian - School of Economics and Finance, University of St. Andrews - 2013

-horizon expectations using adaptive learning. We ex- tend the existing framework by introducing distortionary taxes as well as elastic …

Persistent link: https://www.econbiz.de/10010904133

Anticipation, Learning and Welfare: the Case of Distortionary Taxation

Gasteiger, Emanuel; Zhang, Shoujian - Centre for Dynamic Macroeconomic Analysis, University … - 2013

-horizon expectations using adaptive learning. We ex- tend the existing framework by introducing distortionary taxes as well as elastic …

Persistent link: https://www.econbiz.de/10010904148

Bubbles, Crashes and Risk

Branch, William A.; Evans, George W. - Centre for Dynamic Macroeconomic Analysis, University … - 2013

In an asset-pricing model, risk-averse agents need to forecast the conditional variance of a stock's return. A near-rational restricted perceptions equilibrium exists in which agents believe prices follow a random walk with a conditional variance that is self-fulfilling. When agents estimate...

Persistent link: https://www.econbiz.de/10010904149