We propose a simple theoretical model of supervised learning that is potentially useful to interpret a number of empirical phenomena. The model captures a basic trade-off between sheltering the child from the consequences of his mistakes, and allowing him to learn from experience. We...

We propose a simple theoretical model of supervised learning that is potentially useful to interpret a number of empirical phenomena. The model captures a basic tradeoff between sheltering the child from the consequences of his mistakes, and allowing him to learn from experience. We characterize...

Over the past forty years, U.S. inflation has exhibited highly persistent movements. Moreover, these shifts in inflation have typically had real consequences, implying a "sacrifice ratio," whereby disinflations are typically associated with recessions and persistent increases in inflation often...

Social interactions pervade daily life and thereby create an abundance of social experiences. Such personal experiences likely shape what we believe and who we are. In this paper, we ask if and how personal experiences from social interactions determine individuals' inclination to trust others?...