What happens when fiscal and/or monetary policy changes systematically? We construct a DSGE model in which agents have …

What happens when fiscal and/or monetary policy changes systematically? We construct a DSGE model in which agents have …

What happens when fiscal and/or monetary policy changes systematically? We construct a DSGE model in which agents have …

learning, choosing among a set of alternative forecasting models. The analysis is accompanied by empirical evidence on the …

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 …

We analyse the dynamics resulting from social learning in a simple general equilibrium (GE) model, whose structure is … social learning. We discuss the robustness of the symmetric optimal equilibrium of this GE model, by testing the ability of … agents to coordinate on it through this learning scheme in the absence of substantive rationality and perfect information …

This essay links some of my own work on expectations, learning and bounded rationality to the inspiring ideas of Jean …-Michel Grandmont. In particular, my work on consistent expectations and behavioral learning equilibria may be seen as formalizations of … JMG's ideas of self-fulfilling mistakes. Some of our learning-to-forecast laboratory experiments with human subjects have …

demand and house prices and reinforce agents' optimism (pessimism). Bayesian learning about house prices can endogenously …