Questions tagged [adaptive-learning]

The tag has no usage guidance.

Filter by
Sorted by
Tagged with
3 votes
0 answers
38 views

Experiments on expectations formation

I was reading about the debate between rational expectations and adaptive expectations in some intermediate macro notes. One of the arguments given to discard the adaptive expectations hypothesis drew ...
Ishan Kashyap Hazarika's user avatar
2 votes
1 answer
106 views

Are rational expectations in economics purely forwards looking, or can they have backward looking components?

Are rational expectations (Muth, Lucas, Kyland and Prescott) in economics purely forwards looking, or can they have backward looking components?
Beck Batucada's user avatar
0 votes
0 answers
38 views

What is steady state learning in the context of boundedly rational expectation modeling and how does it differ with other theories of learning?

What is steady state learning in the context of boundedly rational expectation modeling? E.g. see Evans et al. (2009) They define it as: "Under steady-state learning, agents use past data to ...
Beck Batucada's user avatar
1 vote
0 answers
8 views

What would it mean for a parameter region to be E-stable but undeterminate?

What would it mean for a parameter region for a dynamic system to be E-stable, but indeterminate? E-stable: it's stable under learning... so this means, once in equilibrium, you stay there? Or does it ...
Beck Batucada's user avatar
2 votes
0 answers
110 views

determinacy vs. indeterminacy of equilibria in dynamic systems

As explained in Hommes (2018), equilibria in dynamic systems, like DSGE models, can either be determinate or indeterminate. A REE (rational expectations equilibrium) is determinate when there exists a ...
Beck Batucada's user avatar