Showing 1 - 10 of 1,120
We modify Samuelson's multiplier-accelerator model to explore the influence of expectations on fluctuations in economic activity. Within our model, the agents use a nonlinear mix of extrapolative and regressive forecast rules to predict the output. Our model is able to mimic some generic...
Persistent link: https://www.econbiz.de/10005751402
Cyclical or chaotic competitive equilibria that do not exist under perfect foresight are shown to occur in a decentralized growth model under constant gain adaptive learning. This paper considers an economy populated by boundedly rational households making one-period ahead constant gain adaptive...
Persistent link: https://www.econbiz.de/10005537484
Bounded rationality is introduced into a standard growth model by assuming that households form one-period ahead least squares forecasts on production factor prices, and expect that future level of consumption and physical capital will be consistent with the balanced growth path. Under those...
Persistent link: https://www.econbiz.de/10005537622
We develop a simple agent-based financial market model in which heterogeneous speculators apply technical and fundamental analysis to trade in two different stock markets. Speculators' strategy/market selections are repeated at each time step and depend on predisposition effects, herding...
Persistent link: https://www.econbiz.de/10010954951
Abstract. In the 1980s and at beginning of the 1990s the debate on expectation formation mechanism was dominated by the rational expectation hypothesis. Later on, more interest was directed towards alternative approaches to expectations analysis, mainly based on the bounded rationality paradigm...
Persistent link: https://www.econbiz.de/10009328121
Economic modeling of financial markets attempts to model highly complex systems in which expectations can be among the dominant driving forces. It is necessary, then, to focus on how agents form expectations. We believe that they look for patterns, hypothesize, try, make mistakes, learn and...
Persistent link: https://www.econbiz.de/10005542268
In this paper we integrate heterogeneous inflation expectations into a simple monetary model. Guided by empirical evidence we assume that boundedly rational agents, selecting between extrapolative and regressive forecasting rules to predict the future inflation rate, prefer rules that have...
Persistent link: https://www.econbiz.de/10008534153
The following paper analyzes the results of empirical controlling research in German-speaking countries from 1990 to 2007 with focus on how far the characteristics of the planning system have an impact on business success. We identify fifteen empirical studies on this subject from which we...
Persistent link: https://www.econbiz.de/10010995221
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