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Are stationary hyperinflation paths learnable?

Adam, Klaus; Evans, George W.; Honkapoja, Seppo - 2003

Earlier studies of the seigniorage inflation model have found that the high-inflation steady state is not stable under adaptive learning. We reconsider this issue and analyze the full set of solutions for the linearized model. Our main focus is on stationary hyperinflationary paths near the...

Persistent link: https://www.econbiz.de/10011507885

Market distortions and local indeterminacy : a general approach

Lloyd-Braga, Teresa; Modesto, Leonor; Seegmuller, Thomas - 2011

We provide a methodology to study the role of market distortions on the emergence of indeterminacy and bifurcations … classes of distortions responsible for indeterminacy. Our methodology consists in introducing general specifications for the … distortions influence the range of values for the elasticity of inputs substitution under which local indeterminacy and …

Persistent link: https://www.econbiz.de/10009235089

Shopping Externalities and Self-Fulfilling Unemployment Fluctuations

Kaplan, Greg - 2012

generates positive externalities on other firms, because employed workers have more income to spend and have less time to shop … for low prices than unemployed workers. We quantify these shopping externalities and show that they are sufficiently …

Persistent link: https://www.econbiz.de/10013096628

Learning as a Rational Foundation for Macroeconomics and Finance

Evans, George W.; Honkapohja, Seppo - 2011

Expectations play a central role in modern macroeconomics. The econometric learning approach, in line with the cognitive consistency principle, models agents as forming expectations by estimating and updating subjective forecasting models in real time. This approach provides a stability test for...

Persistent link: https://www.econbiz.de/10014183715

Beliefs asymmetry and price stability in a cobweb model

Berardi, Michele - 2021

This work analyses the role of asymmetry in beliefs for price dynamics in a cobweb model with heterogeneous expectations and evolutionary selection of predictors. While heterogeneous but symmetric beliefs result in the rational expectations equilibrium price, the effect of asymmetry depends on...

Persistent link: https://www.econbiz.de/10013235468

Modelling Social Learning in an Agent–Based Baseline Macro Model

Salle, Isabelle - 2014

We analyse the dynamics resulting from social learning in a simple general equilibrium (GE) model, whose structure is similar to the one underlying macroeconomic models of the New Macroeconomic Synthesis. The economy is composed by households and firms who exchange labour and consumption goods...

Persistent link: https://www.econbiz.de/10013048351

Trend inflation, sticky prices, and expectational stability

Kurozumi, Takushi - In: Journal of economic dynamics & control 42 (2014), pp. 175-187

Persistent link: https://www.econbiz.de/10010429910

Convergence of adaptive learning and the concept of expectational stability in linear rational expectations models with multiple equilibria

Heinemann, Maik - 1997

This paper analyzes the relationship between the expectational stability of rational expectations equilibria and the possible convergence of adaptive learning processes. Results obtained using recursive least squares lead to the conjecture that a correspondence between these both selection...

Persistent link: https://www.econbiz.de/10011526755

A generalized approach to indeterminacy in linear rational expectations models

Bianchi, Francesco; Nicolò, Giovanni - In: Quantitative economics : QE ; journal of the … 12 (2021) 3, pp. 843-868

We propose a novel approach to deal with the problem of indeterminacy in linear rational expectations models. The … number of explosive roots in presence of indeterminacy. The solution in this expanded state space, if it exists, is always … and any degree of indeterminacy, and it can be implemented even when the boundaries of the determinacy region are unknown …

Persistent link: https://www.econbiz.de/10012598516

A generalized approach to indeterminacy in linear rational expectations models

Bianchi, Francesco; Nicolò, Giovanni - 2019

We propose a novel approach to deal with the problem of indeterminacy in Linear Rational Expectations models. The … number of explosive roots in presence of indeterminacy. The solution in this expanded state space, if it exists, is always … and any degree of indeterminacy, and it can be implemented even when the boundaries of the determinacy region are unknown …

Persistent link: https://www.econbiz.de/10012181061