Rational Expectations (REE), BLE, and constant gain learning models shows that the BLE model outperforms the REE benchmark and …-autocorrelation learning of optimal AR(1) beliefs provides the best fit when short-term survey data on inflation expectations are taken into …We introduce Behavioral Learning Equilibria (BLE) into a multivariate linear framework and apply it to New Keynesian …

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 …

action with state-dependent payoffs that effectively summarizes the optimal learning and conditional choices. The ignorance … learning-proof menu, yielding new insights regarding the behavioral implications of RI, in particular as new actions are added …

action with state-dependent payoffs that effectively summarizes the optimal learning and conditional choices. The ignorance … learning-proof menu, yielding new insights regarding the behavioral implications of RI, in particular as new actions are added …