Learning Dynamics: Complete and Incomplete Learning

Seppo Honkapohja

Chapter 12 in Advances in Macroeconomic Theory, 2001, pp 239-254 from Palgrave Macmillan

Abstract: Abstract Rational expectations (RE) is currently the standard approach to modelling expectations in macroeconomics. However, refinements to modelling expectations formation have recently been developed and the literature on learning dynamics has grown rapidly. The basic idea in models of learning is that agents have limited information about the structure of the economy and they have to act inductively like scientists when they forecast the relevant aspects of its future course. Some forecasting is necessary since, as is common in economics, the decisions of individual agents depend on the future and these agents are forward looking in their decision-making. The RE hypothesis is weakened to the assumption that expectations follow a real-time learning rule which often will make expectations converge to RE over time.

Keywords: Rational Expectation; Phillips Curve; Productivity Shock; Rational Expectation; Learn Dynamics (search for similar items in EconPapers)
Date: 2001
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Learning Dynamics: Complete and Incomplete Learning (1999)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:intecp:978-0-333-99275-3_12

Ordering information: This item can be ordered from
http://www.palgrave.com/9780333992753

DOI: 10.1057/9780333992753_12

Access Statistics for this chapter

More chapters in International Economic Association Series from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().