This paper examines the empirical significance of learning, a type of adaptive, boundedly rational expectations, in the … accumulation. Estimation results for learning models can be sensitive to the choice for the initial conditions for agents … conditions with the other parameters of the model. Maximum likelihood results show that learning under all methods for initial …

have rational expectations, but instead form expectations through least squares learning with an endogenously changing … learning gain. It has been suggested that this type of endogenously changing learning mechanism can create periods of excess … large variances for structural shocks, and the other state has relatively smaller variances. To assess whether learning can …

learning is sensitive to the stance taken on agents beliefs at the beginning of the sample. The New Keynesian model is … estimated under rational expectations and under learning with three different frameworks for how expectations are set at the … post-war United States. The results indicate statistical evidence for adaptive learning, however the rational expectations …

learning is sensitive to the stance taken on agents beliefs at the beginning of the sample. The New Keynesian model is … estimated under rational expectations and under learning with three different frameworks for how expectations are set at the … post-war United States. The results indicate statistical evidence for adaptive learning, however the rational expectations …

have rational expectations, but instead form expectations through least squares learning with an endogenously changing … learning gain. It has been suggested that this type of endogenously changing learning mechanism can create periods of excess … large variances for structural shocks, and the other state has relatively smaller variances. To assess whether learning can …

are assumed to be formed from a near-rational learning model. Agents are endowed with a perceived law of motion that … updating their beliefs through constant-gain learning. In each period, however, they may form expectations that fall above or … below those implied by the learning model. These deviations capture excesses of optimism and pessimism, which can be quite …