This paper introduces a social learning algorithm for recursive decision problems faced by players in large anonymous games. The algorithm keeps track of only the distributions of agents over possible state-action pairs. State update, value update and behavior update constitute the three stages...

By using the U.S. NBER-CES industry-level data for the 1962-2005 period, we analyze how exogenous changes in firms'borrowing costs, measured by the spread between Baa and Aaa rated corporate bonds, affect employment dynamics and whether external finance dependence differences across industries...