Cho, In-Koo; Williams, Noah; Sargent, Thomas J. - In: Review of Economic Studies 69 (2002) 1, pp. 1-40
An ordinary differential equation (ODE) gives the mean dynamics that govern the convergence to self-confirming equilibria of self-referential systems under discounted least squares learning. Another ODE governs escape dynamics that recurrently propel away from a selfconfirming equilibrium. In a...