Carceles-Poveda, Eva; Giannitsarou, Chryssi - In: Review of Economic Dynamics 11 (2008) 3, pp. 629-651
We study the extent to which self-referential adaptive learning can explain stylized asset pricing facts in a general equilibrium framework. In particular, we analyze the effects of recursive least squares and constant gain algorithms in a production economy and a Lucas type endowment economy....