This paper provides evidence that learning about demand is an important driver of firms' dynamics. We present a simple … model with Bayesian learning in which firms are uncertain about their idiosyncratic demand parameter in each of the markets … their beliefs following a new demand shock, the younger they are. To test this learning mechanism, we make use of a specific …

private agents are gradually learning their economic environment. When agents update their beliefs about the unobserved … process driving financial shocks to the leverage ratio, the responses of output and other aggregates under adaptive learning …, debt-to-GDP and land value-to-GDP ratios for 1996Q1-2008Q4, learning amplifies leverage shocks by a factor of about three …

effects is interpreted as an absence of learning effects associated with exporting. This result does not seem to fully hold …