We establish the standard procedures in solving a class of dynamic stochastic general equilibrium models with a second-order approximation to the policy function. The innovation is that the means of exogenous shocks vary with the variances. The numerical results show that second-order...

This paper studies the adaptive learning dynamics over multiple locations. Our focus is to show that, to observe the average performance of other locations is necessary or efficient. Through the analysis of information structure, the result about convergence and stochastic stability can be...