Seppo Honkapohja and Kaushik Mitra (2004) Learning Stability in Economies with Heterogenous Agents.
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An economy exhibits structural heterogeneity when the forecasts of different agents have different effects on the determination of aggregate variables. We study the important case of economies in which agents’ behavior depends on forecasts of aggregate variables and show 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 a market model with speculative demand and a New Keynesian model of interest rate setting.
This is a Accepted version This version's date is: 2004 This item is not peer reviewed
https://repository.royalholloway.ac.uk/items/bdbe5f5e-9beb-d806-935a-adc03ee2cf0f/1/
Deposited by Leanne Workman (UXYL007) on 16-Oct-2012 in Royal Holloway Research Online.Last modified on 16-Oct-2012
©2004 Seppo Honkapohja and Kaushik Mitra. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit including © notice, is given to the source.