Ellison, Martin; Pearlman, Joseph - Centre for Dynamic Macroeconomic Analysis, University … - 2010
Saddlepath learning occurs when agents know the form but not the coefficients of the sad?dlepath relationship defining … rational expectations equilibrium. Under saddlepath learning, we obtain a completely general relationship between determinacy … system is determinate, we show that a learning process based on the saddlepath is always e-stable. When the system is …