Adaptive learning is important in dynamic models since it is a process that shows the improvement in the understanding of the agents of the model. Whenever there is a dynamic environment, there is a room for improvement through learning. In this thesis I analyze the adaptive learning of the...

In the economic literature there are divergences on a number ofissues between the results obtained with macro- and micro-basedmodels. Habit formation in consumption is one example of suchdisagreement. Another example is the discrepancy between thetheoretical prediction that all investors should...

I study selected fiscal policy issues both in the short-run and long-run using empirical methods. In Chapter 2, I investigate the effects of increases in U.S. government expenditures on the private sector in a real business cycle framework using maximum likelihood. I distinguish between the...