This paper considers the impact of heterogeneous gain learning in an asset pricing model. A relatively stylized model … of U.S financial data. The detailed mechanisms of the learning models are then explored. Evidence suggests that agents … putting large amounts of weight on the recent past in their volatility models control a large fraction of wealth, and are …

equilibrium dynamics resulting from this learning process helps to explain the main stylized facts of free-floating exchange rates … (unit roots in levels together with fat tails in returns and volatility clustering). Our time series analysis of simulated … the number of agents (not more than about 1000). With a larger population, this collective learning dynamics looses its …