recursive, stochastic algorithms which can be applied to economic models with learning. The formal result provides probability … bounds for convergence which can be used to describe the local stability under learning of rational expectations equilibria …

This chapter provides a survey of the recent work on learning in the context of macroeconomics. Learning has several … roles. First, it provides a boundedly rational model of how rational expectations can be achieved. Secondly, learning acts … as a selection device in models with multiple REE (rational expectations equilibria). Third, the learning dynamics …