realistic assumption of boundedly rational learning where agents are assumed to use only a limited set of information to form … differences in the adjustment path to the shocks to the economy when agent form expectations using our learning approach compared …

realistic assumption of boundedly rational learning where agents are assumed to use only a limited set of information to form … path to the shocks to the economy when agent form expectations using our learning approach compared to expectations formed …

time separable preferences strongly improves empirical performance. Learning causes momentum and mean reversion of returns … and thereby excess volatility, persistence of price-dividend ratios, long-horizon return predictability and a risk premium … restrict consideration to learning schemes that imply only small deviations from full rationality. The findings are robust to …

returns and the equity variance premium. We evaluate a plethora of state-of-the-art volatility forecasting models to produce …

The VIX, the stock market option-based implied volatility, strongly co-moves with measures of the monetary policy … stance. When decomposing the VIX into two components, a proxy for risk aversion and expected stock market volatility …