Anticipated fiscal policy and adaptive learning

George Evans, Seppo Honkapohja and Kaushik Mitra

Journal of Monetary Economics, 2009, vol. 56, issue 7, 930-953

Abstract: The impact of anticipated policy changes when agents form expectations using adaptive learning rather than rational expectations is considered. Agents are assumed to combine limited structural knowledge with a standard adaptive learning rule. These issues are analyzed using two well-known set-ups, an endowment economy and the Ramsey model. In our scenario there are important deviations from both rational expectations and purely adaptive learning. The approach could be applied to other frameworks.

Keywords: Taxation; Expectations; Ramsey; model (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (54)

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Related works:
Working Paper: Anticipated Fiscal Policy and Adaptive Learning (2008)
Working Paper: Anticipated Fiscal Policy and Adaptive Learning (2007)
Working Paper: Anticipated Fiscal Policy and Adaptive Learning (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:moneco:v:56:y:2009:i:7:p:930-953

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