This paper develops a theory of endogenously (non-)Ricardian beliefs. That is, whether Ricardian Equivalence holds in … an equilibrium depends on endogenous private sector beliefs. The novelty here is a restricted perceptions viewpoint: in … Ricardian beliefs emerge as a self-confirming equilibrium, while the other features an equilibrium with non-Ricardian beliefs …

over wages and adaptive learning. We assume that workers are boundedly rational in the sense that they do not have perfect … foresight about the outcome of wage bargaining. Instead workers use a recursive OLS learning mechanism and bases their forecats …

indeterminate. Only in the latter case do there exist sunspot equilibria that are stable under adaptive learning. A sufficient …

rigidities among households varies across time, but also provide, using a large news corpus and machine learning algorithms …

chances, we construct a Choquet Bayesian learning model over the life-cycle that generates a motivational notion of neo …-additive survival beliefs expressing ambiguity attitudes. We embed these neo-additive survival beliefs as decision weights in a Choquet … expected utility life-cycle consumption model and calibrate it with data on subjective survival beliefs from the Health and …

update expectations by Bayesian learning based on observations from their own lifetimes. In this model, the stock price … approximated by a representative-agent model with constant-gain learning, where the gain parameter is related to the survival rate …

stable under adaptive learning, taking the form of noisy finite state Markov processes at resonant frequencies. For a range …

We consider the stability under adaptive learning of the complete set of solutions to the basic linear forward looking … learning process. Only the finite-state Markov sunspot solutions can be stable under learning …