learning is sensitive to the stance taken on agents beliefs at the beginning of the sample. The New Keynesian model is … estimated under rational expectations and under learning with three different frameworks for how expectations are set at the … post-war United States. The results indicate statistical evidence for adaptive learning, however the rational expectations …

This paper examines the empirical significance of learning, a type of adaptive, boundedly rational expectations, in the … accumulation. Estimation results for learning models can be sensitive to the choice for the initial conditions for agents … conditions with the other parameters of the model. Maximum likelihood results show that learning under all methods for initial …

-war economic volatility within the context of a New Keynesian model. Agents form expectations using constant gain learning then …

The adaptive learning approach has been fruitfully employed to model the formation of aggregate expectations at the … macroeconomic level, as an alternative to rational expectations. This paper uses adaptive learning to understand, instead, the … sentiment, defined as the degrees of excess optimism and pessimism that cannot be justified by the near-rational learning model …

infinite-horizon learning, and subjective expectations with Euler-equation learning. Under rational expectations, the model … necessitates of large, possibly unrealistically so, degrees of myopia. The same result persists under infinite-horizon learning …, given that agents are still remarkably farsighted. But, under Euler-equation learning, the model can fit the data with only …

infinite-horizon learning, and subjective expectations with Euler-equation learning. Under rational expectations, the model … necessitates of large, possibly unrealistically so, degrees of myopia. The same result persists under infinite-horizon learning …, given that agents are still remarkably far-sighted. But, under Euler-equation learning, the model can fit the data with only …