rational expectations. This paper relaxes the assumption of rational expectations and it allows for learning instead. Economic … agents form expectations from simple models and update the parameters through constant-gain learning. I estimate the model by …

expectations to match the inertia in the data and to improve the fit of estimated New Keynesian Phillips curves. The empirical … results show that when learning replaces the assumption of fully rational expectations, structural sources of persistence in …

and inflation indexation, that are typically needed in monetary models with rational expectations to match the persistence … replaces rational expectations, the estimated degrees of habits and indexation drop near zero. This finding suggests that … persistence arises in the model economy mainly from expectations and learning. The posterior model probabilities show that the …

We examine whether a simple agent--based model can generate asset price bubbles and crashes of the type observed in a … bubbles. We have to put more structure on the behavior of the ZI-agents in order to address features of the laboratory asset … environments used in several different laboratory studies, generates asset price bubbles and crashes comparable to those observed …

This paper demonstrates that the adaptive learning approach to modelling private sector expectations can be used as an … the two rational expectations equilibria is stable under least-squares learning, and that it is always the low …

adaptive expectations and partial adjustment mechanisms. The paper demonstrates the difficulty of interpreting distributed lag …

This paper investigates whether expectations of trustworthiness and resulting acts of trust accord with an objective …