speculative bubbles in Germany over the sample period 1987Q3 - 2012Q4. Overall, we find that actual house prices are not … significantly disconnected from underlying economic fundamentals. Thus, there is no evidence of speculative house price bubbles in …

The paper investigates social-learning when the information structure is not commonly known. Individuals repeatedly … interact in social-learning settings with distinct information structures. In each round of interaction, they use their … behavior in the long-run if and only if individuals distinguish social-learning settings and receive rich feedback after each …

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 …

demand. The former learning effect, combined with the latter real-options effect, adversely affect firms' entry decisions and …

Bubbles are omnipresent in lab experiments with asset markets. Most of these experiments were conducted in environments … experiment to measure changes of human trading behavior if these humans expect algorithmic traders. To disentangle the direct … smaller bubbles if human traders expect algorithmic traders to be present. …

This exercise offers an innovative learning mechanism to model economic agent's decision-making process using a deep … reinforcement learning algorithm. In particular, this AI agent is born in an economic environment with no information on the … adjusting its actions accordingly (i.e., online learning). I illustrate that the economic agent under deep reinforcement …

We develop a model of firm learning in volatile markets with noisy signals and test its predictions using historical … German data. Firms' forecasts improve with age. We exploit German Reunification as a natural experiment where firms in the … improvements from learning are faster where market signals are noisier. …