realistic assumption of boundedly rational learning where agents are assumed to use only a limited set of information to form … differences in the adjustment path to the shocks to the economy when agent form expectations using our learning approach compared …

realistic assumption of boundedly rational learning where agents are assumed to use only a limited set of information to form … path to the shocks to the economy when agent form expectations using our learning approach compared to expectations formed …

machine learning algorithms. We find that a neural network performs best out-of-sample. Thus, we use this algorithm to …

adaptive learning. The Galí, Smets and Wouters model is the chosen laboratory using quarterly real-time euro area data vintages …, covering 2001Q1-2019Q4. The adaptive learning model obtains better within-sample fit for all vintages used for estimation in … forecast horizon, while the adaptive learning model predicts better for the outer quarters. …