perceptions, an increase in inertia will always eventually lead to an explosive RPE if the RPE is not learnable. The stability …

agents and homogeneous learning. We study the local stability of REEs under heterogeneous adaptive learning, for the broad … general conditions for local stability of an REE. Even though in general, hetereogeneity may lead to different stability … conditions, we provide applications to various economic models where the stability conditions are identical to the conditions …

both staggered prices and wages. It exhibits typical Keynesian feedback structures with asymptotic stability of its steady … state for low adjustment speeds and with cyclical loss of stability -- by way of Hopf bifurcations -- when certain … order to study its stability features based on empirical parameter estimates with respect to its various feedback channels …

We evaluate the stability of risk-sharing contracts in the presence of moral hazard. Contracts are rules for sharing … their choice and apply methods of evolutionary stability. We identify stable contracts, which survive competition against …