Evans, George W.; Honkapohja, Seppo; Mitra, Kaushik - Centre for Dynamic Macroeconomic Analysis, University … - 2010
This paper considers the Ricardian Equivalence proposition when expectations are not rational and are instead formed using adaptive learning rules. We show that Ricardian Equivalence continues to hold provided suitable additional conditions on learning dynamics are satis?fied. However, new cases...