Temporary equilibrium dynamics with bayesian learning

Temporary equilibrium dynamics with bayesian learning

This paper examines the stability of deterministic steady states in a class of economies where the state variable is one dimensional and where agents use Bayesian techniques to form expectations. The dynamics with learning are locally convergent if the prior mean is close to a stable perfect-foresig...

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Main Author: CHATTERJI, Shurojit
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 1995
Subjects:
Econometrics
Economics
Economic Theory
Online Access:https://ink.library.smu.edu.sg/soe_research/1956
https://ink.library.smu.edu.sg/context/soe_research/article/2955/viewcontent/Temporary_Equilibrium_Dynamics_with_Bayesian_Learning.pdf
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Institution: Singapore Management University
Language: English
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spelling sg-smu-ink.soe_research-29552017-04-24T03:34:43Z Temporary equilibrium dynamics with bayesian learning CHATTERJI, Shurojit This paper examines the stability of deterministic steady states in a class of economies where the state variable is one dimensional and where agents use Bayesian techniques to form expectations. The dynamics with learning are locally convergent if the prior mean is close to a stable perfect-foresight root having modulus less than 1 and if the prior beliefs are held with enough confidence. The dynamics are, however, divergent if the prior mean or the variance of the prior distribution is sufficiently large 1995-12-01T08:00:00Z text application/pdf https://ink.library.smu.edu.sg/soe_research/1956 info:doi/10.1006/jeth.1995.1088 https://ink.library.smu.edu.sg/context/soe_research/article/2955/viewcontent/Temporary_Equilibrium_Dynamics_with_Bayesian_Learning.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Economics eng Institutional Knowledge at Singapore Management University Econometrics Economics Economic Theory
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Econometrics
Economics
Economic Theory
spellingShingle Econometrics
Economics
Economic Theory
CHATTERJI, Shurojit
Temporary equilibrium dynamics with bayesian learning
description This paper examines the stability of deterministic steady states in a class of economies where the state variable is one dimensional and where agents use Bayesian techniques to form expectations. The dynamics with learning are locally convergent if the prior mean is close to a stable perfect-foresight root having modulus less than 1 and if the prior beliefs are held with enough confidence. The dynamics are, however, divergent if the prior mean or the variance of the prior distribution is sufficiently large
format text
author CHATTERJI, Shurojit
author_facet CHATTERJI, Shurojit
author_sort CHATTERJI, Shurojit
title Temporary equilibrium dynamics with bayesian learning
title_short Temporary equilibrium dynamics with bayesian learning
title_full Temporary equilibrium dynamics with bayesian learning
title_fullStr Temporary equilibrium dynamics with bayesian learning
title_full_unstemmed Temporary equilibrium dynamics with bayesian learning
title_sort temporary equilibrium dynamics with bayesian learning
publisher Institutional Knowledge at Singapore Management University
publishDate 1995
url https://ink.library.smu.edu.sg/soe_research/1956
https://ink.library.smu.edu.sg/context/soe_research/article/2955/viewcontent/Temporary_Equilibrium_Dynamics_with_Bayesian_Learning.pdf
_version_ 1770573376125927424

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