This paper provides evidence that learning about demand is an important driver of firms' dynamics. We present a simple … model with Bayesian learning in which firms are uncertain about their idiosyncratic demand parameter in each of the markets … their beliefs following a new demand shock, the younger they are. To test this learning mechanism, we make use of a specific …

correlated learning may render it optimal to enter markets sequentially – an investment in market A is only followed by entry in …, we identify correlated learning across markets beyond alternative explanations as a key driver of gradualism in the …

economic growth by raising total factor productivity, but its impact is only transitory. Several predictions on the evolution … of real and financial variables are derived, including capital efficiency, total factor productivity, industrial …

, leverage, and asset prices larger than predicted under either rational expectations without learning or with learning but …

policy-makers, learning from the experience of the 1970s, eschewed activist policies in favour of policies that concentrated …

idiosyncratic productivity distribution across firms. For the first model, we show that learning leads to higher wage demands by the …We propose a simple model of optimal stopping where the economic environment changes as a result of learning. A primary … workers. In the second model, we give sufficient conditions so that learning leads to higher wage demands for optimistic …

models of expectations formation that rely on econometric learning. Some apparently natural policy rules turn out to imply … expectational instability of private agents' learning. We use the standard New Keynesian model to illustrate this problem and survey … learning. We then consider some practical concerns such as measurement errors in private expectations, observability of …