moments, we show that it can quantitatively account for the observed stock price volatility, the persistence of the price …

realistic assumption of boundedly rational learning where agents are assumed to use only a limited set of information to form …

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 …

Different theories of expectation formation and learning usually yield different outcomes for realized market prices in … dynamic models. The purpose of this paper is to investigate expectation formation and learning in a controlled experimental … measured by the variance is significantly larger than the amplitude under RE, implying persistent excess volatility. However …

This chapter provides a survey of the recent work on learning in the context of macroeconomics. Learning has several … roles. First, it provides a boundedly rational model of how rational expectations can be achieved. Secondly, learning acts … as a selection device in models with multiple REE (rational expectations equilibria). Third, the learning dynamics …

demand and house prices and reinforce agents' optimism (pessimism). Bayesian learning about house prices can endogenously …

Experience-Based Learning (EBL) that renders expectations heterogeneous across age groups. Under EBL, the age … volatility, output is always less volatile due to the reduced sensitivity of expectations to monetary policy. Second, under EBL …

In this article, we investigate the possibility of sunspot equilibria to emerge from a process of learning and …

demand and house prices and reinforce agents' optimism (pessimism). Bayesian learning about house prices can endogenously …