Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
967529 | Journal of Monetary Economics | 2009 | 24 Pages |
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.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
George W. Evans, Seppo Honkapohja, Kaushik Mitra,