Heterogeneous LearningReview of Economic Dynamics, 2003, vol. 6, issue 4, pages 885-906 Abstract: There is by now a large literature characterising conditions under which learning schemes converge to rational expectations equilibria (REEs). It has been claimed that these results depend on the assumption of homogeneous agents and homogeneous learning. This paper analyses the stability of REEs under heterogeneous adaptative learning, for the class of self-referential linear stochastic models. Agents may differ in their initial perceptions about the evolution of the economy, the degrees of inertia in revising their expectations, or the learning rules they use. General conditions are provided for local stability of an REE. In general, it is not possible to show that stability inder homogeneous learning implies stability under heterogeenous learning. To illustrate how to apply the results, several examples are provided. (Copyright: Elsevier) Keywords: adaptative learning; heterogeneity; stability of equilibria (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: http://EconPapers.repec.org/RePEc:red:issued:v:6:y:2003:i:4:p:885-906 Ordering information: This journal article can be ordered from Access Statistics for this article Review of Economic Dynamics is edited by Gianluca Violante More articles in Review of Economic Dynamics from Elsevier for the Society for Economic Dynamics |
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