This paper reviews a growing literature investigating how economic agents may learn rational expectations. Fully rational learning requires implausible initial information assumptions, therefore some form of bounded rationality has come into focus. Such learning models often converge to rational...

Leif Johansens short run macro production function is used to explore the conditions for a productivity slowdown to take place simultaneously with an accelerated technical change in production. A capacity distribution such that the supply curve is concave at the extensive margin considerably...

A quality-adjusted specification of labor is suggested which allows firm training to affect labor efficiency. To assess the cost and productivity effects, this specification is integrated into a flexible neoclassical cost function. The empirical analysis uses panel data for eight plants in the...