I study here a model of a two-country economy where agents update their decision rules using an evolutionary algorithm consisting of imitation and experimentation. This environment, in which perfect currency substitution exists, is convenient for studies of issues relating to international...

We introduce adaptive learning behavior into a general equilibrium lifecycle economy with capital accumulation. Agents form forecasts of the rate of return to capital assets using least squares autoregressions on past data. We show that, in contrast to the perfect foresight dynamics, a dynamical...