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Evans, George W.; Honkapohja, Seppo - 2021

We introduce the E-correspondence principle for stochastic dynamic expectations models as a tool for comparative dynamics analysis. The principle is applicable to equilibria that are stable under least squares and closely related learning rules. With this technique it is possible to study,...

Persistent link: https://www.econbiz.de/10013319530

Convergence for difference equations with vanishing time-dependence, with applications to adaptive learning

Evans, George W.; Honkapohja, Seppo - In: Economic Theory 15 (2000) 3, pp. 717-725

We provide conditions for local stability and instability of an equilibrium point in certain systems of nonautonomous …

Persistent link: https://www.econbiz.de/10005371114

Chapter 7 Learning dynamics

Evans, George W.; Honkapohja, Seppo - In: Handbook of macroeconomics : volume 1, part A, (pp. 449-542). 1999

approximation based on an associated differential equation. Global stability, local stability and instability results for SRAs are … presented. For a wide range of solutions to economic models the stability conditions for REE under statistical learning rules … are given by the expectational stability principle, which is treated as a unifying principle for the results presented …

Persistent link: https://www.econbiz.de/10014024243

Stable sunspot equilibria in a cash-in-advance economy

Evans, George W.; Honkapohja, Seppo; Marimon, Ramon - Department of Economics and Business, Universitat … - 2004

We analyze a monetary model with flexible labor supply, cash-inadvance constraints and seigniorage-financed government deficits. If the intertemporal elasticity of substitution of labor is greater than one, there are two steady states, one determinate and the other indeterminate. If the...

Persistent link: https://www.econbiz.de/10005827487

Learning as a Rational Foundation for Macroeconomics and Finance

Evans, George W.; Honkapohja, Seppo - C.E.P.R. Discussion Papers - 2011

in real time. This approach provides a stability test for RE equilibria and a selection criterion in models with multiple …-level targeting to achieve learning-stability of the optimal RE equilibrium and whether under learning price-level targeting can rule …

Persistent link: https://www.econbiz.de/10009003380

Stable Sunspot Equilibria in a Cash-in-Advance Economy

Evans, George W.; Honkapohja, Seppo; Marimon, Ramon - Barcelona Graduate School of Economics (Barcelona GSE) - 2003

Persistent link: https://www.econbiz.de/10010851434

Finite Horizon Learning

Branch, William A.; Evans, George W.; McGough, Bruce - Department of Economics, University of Oregon - 2010

Incorporating adaptive learning into macroeconomics requires assumptions about how agents incorporate their forecasts into their decision-making. We develop a theory of bounded rationality that we call finite-horizon learning. This approach generalizes the two existing benchmarks in the...

Persistent link: https://www.econbiz.de/10008774192

Eductive Stability in Real Business Cycle Models

Evans, George W.; Guesnerie, Roger; McGough, Bruce - Department of Economics, University of Oregon - 2010

We reexamine issues of coordination in the standard RBC model. Is the unique rational expectations equilibrium attainable by rational agents who contemplate the possibility of small deviations from equilibrium? Surprisingly, we find that coordination cannot be expected. Even with strong common...

Persistent link: https://www.econbiz.de/10008774195

Are stationary hyperinflation paths learnable?

Adam, Klaus; Evans, George W.; Honkapohja, Seppo - Center for Financial Studies - 2003

Earlier studies of the seigniorage inflation model have found that the high-inflation steady state is not stable under adaptive learning. We reconsider this issue and analyze the full set of solutions for the linearized model. Our main focus is on stationary hyperinflationary paths near the...

Persistent link: https://www.econbiz.de/10010958763

Generalized stochastic gradient learning

Evans, George W.; Honkapohja, Seppo; Williams, Noah - 2005

conditions for stability of standard stochastic gradient (SG) learning both differ from and are related to E-stability, which … governs stability under least squares learning. SG algorithms are sensitive to units of measurement and we show that there is … a transformation of variables for which E-stability governs SG stability. GSG algorithms with constant gain have a …

Persistent link: https://www.econbiz.de/10010261355