We demonstrate that heat inhibits learning and that school air-conditioning mitigates this effect. Student fixed … heat being particularly damaging. Weekend and summer heat has little impact, suggesting heat directly disrupts learning … simple benefit-cost tests. Without air-conditioning, a 1°F hotter school year reduces that years learning by one percent. Hot …

We derive the optimal monetary policy in a sticky price model when private agents follow adaptive learning. We show … order to facilitate private sector learning and thus ease the future intratemporal inflation-output gap trade-offs. The … policy recommendation is robust: the welfare loss entailed by the optimal policy under learning if the private sector …

losses are outweighed by short term gains from the learning phase. …

We derive the optimal monetary policy in a sticky price model when private agents follow adaptive learning. We show … order to facilitate private sector learning and thus ease the future intratemporal inflation-output gap trade-offs. The … policy recommendation is robust: the welfare loss entailed by the optimal policy under learning if the private sector …

We demonstrate that heat inhibits learning and that school air-conditioning mitigates this effect. Student fixed … heat being particularly damaging. Weekend and summer heat has little impact, suggesting heat directly disrupts learning … simple benefit-cost tests. Without air-conditioning, a 1°F hotter school year reduces that years learning by one percent. Hot …

The adaptive learning approach has been fruitfully employed to model the formation of aggregate expectations at the … macroeconomic level, as an alternative to rational expectations. This paper uses adaptive learning to understand, instead, the … sentiment, defined as the degrees of excess optimism and pessimism that cannot be justified by the near-rational learning model …

infinite-horizon learning, and subjective expectations with Euler-equation learning. Under rational expectations, the model … necessitates of large, possibly unrealistically so, degrees of myopia. The same result persists under infinite-horizon learning …, given that agents are still remarkably farsighted. But, under Euler-equation learning, the model can fit the data with only …