This essay links some of my own work on expectations, learning and bounded rationality to the inspiring ideas of Jean …-Michel Grandmont. In particular, my work on consistent expectations and behavioral learning equilibria may be seen as formalizations of … JMG's ideas of self-fulfilling mistakes. Some of our learning-to-forecast laboratory experiments with human subjects have …

estimation of the parameters in an auxiliary model. The learning scheme employed by the agents belongs to the class of stochastic …

macroeconomic models in which agents are boundedly rational and use an adaptive learning rule to form expectations of the endogenous … estimate it empirically. Two prominent learning algorithms are considered, namely constant gain and decreasing gain learning …. For each of the two learning rules, the analysis proceeds in two stages. First, the paper derives the asymptotic …