Global stability in spite of ''local instability'' with learning
We analyse learning dynamics in deterministic economies when agents generate their forecasts by performing least squares regressions on lagged values of the endogenous state variable. We establish conditions for the global convergence to the deterministic steady state of the dynamics under learning....
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| Main Authors: | , |
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| Format: | text |
| Language: | English |
| Published: |
Institutional Knowledge at Singapore Management University
2000
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| Subjects: | |
| Online Access: | https://ink.library.smu.edu.sg/soe_research/1881 |
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| Institution: | Singapore Management University |
| Language: | English |