in a simple stochastic growth model. The rational expectations equilibrium is stable under both types of learning, though …

expectations. We impose inflation and consumption lower bounds, which can be relevant when agents are pessimistic. The inflation … target is locally stable under learning. Pessimistic initial expectations may sink the economy into steady-state stagnation …. Following a severe pessimistic expectations shock a large temporary fiscal stimulus is needed to avoid or emerge from stagnation …

form expectations using adaptive learning rather than rational expectations (RE). The output multipliers for government … episodes of "fiscal consolidations." JEL classification: E62, D84, E21, E43 Key words: Government Purchases, Expectations …, Output Multiplier, Fiscal Consolidation, Taxation …

We consider the impact of anticipated policy changes when agents form expectations using adaptive learning rather than … rational expectations. To model this we assume that agents combine limited structural knowledge with a standard adaptive …-up there are important deviations from both rational expectations and purely adaptive learning. Our approach could be applied …

What is the impact of surprise and anticipated policy changes when agents form expectations using adaptive learning … rather than rational expectations? We examine this issue using the standard stochastic real business cycle model with lump …-shaped response, and tend to be prominently characterized by oscillations not present under rational expectations. These fluctuations …

form expectations using adaptive learning rather than rational expectations (RE). The output multipliers for government …

not hold in general. Our results suggest that taxation has a significant and strong impact on consumption choice. Over the … Ricardian proposition. Our results show dynamic effects; taxation inuences consumption beyond the current period. …

not hold in general. Our results suggest that taxation has a significant and strong impact on consumption choice. Over the … Ricardian proposition. Our results show dynamic effects; taxation influences consumption beyond the current period. …

not hold in general. Our results suggest that taxation has a significant and strong impact on consumption choice. Over the … Ricardian proposition. Our results show dynamic effects; taxation inuences consumption beyond the current period. …