with high fitness. We characterize the stability and bifurcation properties of the underlying deterministic model via the …

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 …

structural stochastic volatility, which derives from different noise levels in the demand of fundamentalists and chartists and …

This exercise offers an innovative learning mechanism to model economic agent's decision-making process using a deep … reinforcement learning algorithm. In particular, this AI agent is born in an economic environment with no information on the … adjusting its actions accordingly (i.e., online learning). I illustrate that the economic agent under deep reinforcement …

We analyze the theoretical moments of a nonlinear approximation to real business cycle model with stochastic volatility … and recursive preferences. We find that the conditional heteroskedasticity of stochastic volatility operationalizes a time … differing orders of approximation, enabling us to identify the common channel through which stochastic volatility in isolation …

We construct a Heston-type stochastic volatility model with a Markov switching regime to price a plain-vanilla stock … enough to provide a wide variety of volatility surfaces for the same volatility level but different regimes …

equilibrium (DSGE) models with stochastic volatility. Our approach is fully Bayesian and employs an affine solution strategy that … premium in a DSGE model that includes time-preference, technology, investment, and volatility shocks. Time-preference and … historical stochastic volatility and equity risk premium series display pronounced countercyclical fluctuations …

uncertainty is proxied by the (unobserved) volatility of the structural shocks, and a regime change occurs whenever credit …