infinite-horizon learning, and subjective expectations with Euler-equation learning. Under rational expectations, the model … sensitive to the modeling of expectations, and they highlight learning as a key behavioral feature to understand macroeconomic …. We investigate the model under different expectational assumptions: rational expectations, subjective expectations with …

infinite-horizon learning, and subjective expectations with Euler-equation learning. Under rational expectations, the model … sensitive to the modeling of expectations, and they highlight learning as a key behavioral feature to understand macroeconomic …. We investigate the model under different expectational assumptions: rational expectations, subjective expectations with …

Different theories of expectation formation and learning usually yield different outcomes for realized market prices in … dynamic models. The purpose of this paper is to investigate expectation formation and learning in a controlled experimental … from individual expectations. Subjects have no information about underlying market equilibrium equations, but can learn by …

may or may not coordinate on the rational equilibrium outcome. A general finding is that under positive expectations … feedback (strategic complementarity) - where optimistic (pessimistic) expectations can cause a boom (bust) - coordination … by coordination on trend-following behavior leading to (almost-)self-fulfilling equilibria. Heterogeneous expectations …