Showing 1 - 10 of 9,860
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...
Persistent link: https://www.econbiz.de/10014024243
Persistent link: https://www.econbiz.de/10012504139
We study the impact of adaptive learning for the design of a robust monetary policy using a small open-economy New Keynesian model. We find that slightly departing from rational expectations substantially changes the way the central bank deals with model misspecification. Learning induces an...
Persistent link: https://www.econbiz.de/10012292350
This paper proposes a new approach for modeling investor fear after rare disasters. The key element is to take into account that investors' information about fundamentals driving rare downward jumps in the dividend process is not perfect. Bayesian learning implies that beliefs about the...
Persistent link: https://www.econbiz.de/10010387528
Persistent link: https://www.econbiz.de/10011383015
This paper models expectation formation by taking into account that agents produce heterogeneous expectations due to model uncertainty, informational frictions and different capacities for processing information. We show that there are two general classes of steady states within this framework:...
Persistent link: https://www.econbiz.de/10013099023
We study a class of forward looking economic models with heterogeneous agents in a bounded rationality setting. The agents employ the same recursive learning rule to update beliefs but are characterized by different memory parameters. The peculiarity of the learning mechanism is that the...
Persistent link: https://www.econbiz.de/10014173987
Persistent link: https://www.econbiz.de/10010237296
Persistent link: https://www.econbiz.de/10010241563
Persistent link: https://www.econbiz.de/10011439596