Learning stability in economics with heterogeneous agents
Seppo Honkapohja () and
No 120, Working Paper Series from European Central Bank
An economy exhibits structural heterogeneity when the forecasts of different agents have different effects on the determination of aggregate variables. We study how different forms of heterogeneity in structure, forecasts and adaptive learning rules affect the conditions for convergence of adaptive learning towards rational expectations equilibrium. Results are applied to the market model with supply lags, a New Keynesian model of interest rate setting and the monetary inflation model with heterogenous agents. JEL Classification: D83, C62, E30
Keywords: adaptive learning; Cagan model; expectations formation; market model; monetary policy; stability of equilibrium (search for similar items in EconPapers)
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Journal Article: Learning Stability in Economies with Heterogeneous Agents (2006)
Working Paper: Learning Stability in Economies with Heterogenous Agents (2004)
Working Paper: Learning Stability in Economies with Heterogenous Agents (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:2002120
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