Determinacy and e-stability under reduced-form learning

Seonghoon Cho

Economics Letters, 2015, vol. 128, issue C, 69-71

Abstract: Under reduced-form learning, agents are endowed with an aggregate model, and rational expectations are then replaced with subjective expectations. This paper demonstrates that the reduced-form learning approach may be arbitrary in that a particular representation of aggregate dynamics has particular e-stability properties even though the underlying model’s behavior is meant to be unique.

Keywords: Determinacy; e-stability; Reduced-form learning; Euler-equation learning; Law of iterative expectation (search for similar items in EconPapers)
JEL-codes: D8 E4 E5 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176515000300
Full text for ScienceDirect subscribers only

Related works:
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:eee:ecolet:v:128:y:2015:i:c:p:69-71

DOI: 10.1016/j.econlet.2015.01.020

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().