of life, but learn in a Bayesian way with successive income observations. We find that learning is very slow and affects …

the empirical fact mentioned above. The learning model in the paper obtains this result by using a self …

the significant growth of survivors. At the core of our theory is the interaction of adjustment costs with learning by … entering firms about their true efficiency. In our model, we consider the effect of linear and nonconvex adjustment costs, i ….e., proportional and fixed costs, and conclude that for most configurations of adjustment costs firms will start small and grow rapidly …

market equilibrium and find that the average learning curve is S-shaped: learning is slow initially, intensifies rapidly and … finally converges slowly to the truth. We show that increasing public information always slows down learning in the long run …

from a VAR estimated on US data. The paper investigates whether introducing bounded rationality and learning generates … comparing the model with learning with a version that imposes rational expectations. Given that the asymptotic behavior of the …

properties of the discrete model validation dynamics converge to those of the continuous learning dynamics. This sheds new light … on the recent constant-gain learning literature. …