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

Expectations play a central role in modern macroeconomics. The econometric learning approach, in line with the … cognitive consistency principle, models agents as forming expectations by estimating and updating subjective forecasting models …

What is the impact of surprise and anticipated policy changes when agents form expectations using adaptive learning … rather than rational expectations? We examine this issue using the standard stochastic real business cycle model with lump …-shaped response, and tend to be prominently characterized by oscillations not present under rational expectations. These fluctuations …

form expectations using adaptive learning rather than rational expectations (RE). The output multipliers for government …

This paper shows that the Ricardian Equivalence proposition can continue to hold when expectations are not rational and … are instead formed using adaptive learning rules. In temporary equilibrium, with given expectations, Ricardian Equivalence … holds under the standard conditions for its validity under rational expectations. Furthermore, Ricardian Equivalence holds …

and monetary policies proposed by Leeper (1991) for stability under learning of rational expectations equilibria (REE …

brought additional asset price equations based on the expecta-tions hypothesis and the Gordon growth model, into the standard … open economy model, in order to extract information on private sector long-run expectations on fundamentals, and to combine … have used for illustrative purposes, we pinned down the long-run inflation expectations and domestic and foreign potential …