We examine optimal policy in an open-economy model with uncertainty and learning, where monetary policy actions affect …

intricate learning/evolving process. In this study, an agent-based computational model is employed to look at how a risk …

imperfect knowledge. We then examine the performance of an easily implemented policy rule that incorporates three key …

and its watershed. We adapted the method of optimal control with Bayes' learning of Easley and Kiefer (Econometrica 1988 … learning, i.e., there is no bandit problem in this context. We numerically solve the model and use Monte Carlo methods to solve … for the mean time to learn and to determine the sensitivity of the speed of learning with respect to changes in the …

: recessions "scar" the economy by killing off "potentially good firms". By adding learning to a vintage model, I show that as a … recession arrives and persists, the reduced profitability limits the scope of learning, makes labor less concentrated on good …

Long-range dependence in volatility is one of the most prominent examples of applications in financial market research … mechanism. This paper contributes to this recent development by analyzing a simple market fraction asset pricing model with two … follow a trend which is updated through a geometric learning process. Our analysis shows that the heterogeneity, trend …