This file is part of IDEAS , which uses RePEc data
[ Papers |
Articles |
Software |
Books |
Chapters |
Authors |
Institutions |
JEL Classification |
NEP reports |
Search |
New papers by email |
Author registration |
Rankings |
Volunteers |
FAQ |
Blog |
Help! ]
Learning Stability in Economies with Heterogeneous Agents Author info | Abstract | Publisher info | Download info | Related research | Statistics Seppo Honkapohja (University of Cambridge)
Kaushik Mitra (University of St. Andrews)
Additional information is available for the following
registered author(s):
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 an overlapping generations model and a New Keynesian model of monetary policy. (Copyright: Elsevier)
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file . Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Article provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics .
Volume (Year): 9 (2006)
Issue (Month): 2 (April)
Pages: 284-309
Download reference. The following formats are available: HTML ,
plain text ,
BibTeX ,
RIS (EndNote),
ReDIF
Handle: RePEc:red:issued:v:9:y:2006:i:2:p:284-309Contact details of provider: Postal: Review of Economic Dynamics Academic Press Editorial Office 525 "B" Street, Suite 1900 San Diego, CA 92101 Fax: 1-860-486-4463 Email: Web page: http://www.EconomicDynamics.org/review.htm More information through EDIRC
Order Information: Email: Web: http://www.EconomicDynamics.org/RED17.htm
For technical questions regarding this item, or to correct its listing, contact: (Christian Zimmermann).
Keywords: Adaptive learning expectations formation stability of equilibrium overlapping generations model inflation monetary policy Other versions of this item:
Paper Kaushik Mitra & Seppo Honkapohja, 2004.
"Learning Stability in Economies with Heterogenous Agents ,"
Royal Holloway, University of London: Discussion Papers in Economics
04/17, Department of Economics, Royal Holloway University of London, revised Jul 2004.
[Downloadable!] Seppo Honkapohja & Kaushik Mitra, 2002.
"Learning stability in economics with heterogenous agents ,"
Working Paper Series
120, European Central Bank.
[Downloadable!] Honkapohja, Seppo & Mitra, Kaushik, 2002.
"Learning Stability in Economies with Heterogenous Agents ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo GmbH.
[Downloadable!] Find related papers by JEL classification: D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information C62 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Existence and Stability Conditions of Equilibrium E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.:
William A. Brock & Cars H. Hommes, 1997.
"A Rational Route to Randomness ,"
Econometrica ,
Econometric Society, vol. 65(5), pages 1059-1096, September.
Evans, G.W. & Honkapohja ,S. & Williams, N., 2005.
"Generalized Stochastic Gradient Learning ,"
Cambridge Working Papers in Economics
0545, Faculty of Economics, University of Cambridge.
[Downloadable!]
Other versions:
George W. Evans & Seppo Honkapohja & Noah Williams, 2005.
"Generalized Stochastic Gradient Learning ,"
NBER Technical Working Papers
0317, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) George W. Evans & Seppo Honkapohja & Noah Williams, 2005.
"Generalized Stochastic Gradient Learning ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo GmbH.
[Downloadable!] George W. Evans & Seppo Honkapohja & Noah Williams, 2005.
"Generalized Stochastic Gradient Learning ,"
University of Oregon Economics Department Working Papers
2005-17, University of Oregon Economics Department, revised 26 Sep 2007.
[Downloadable!] Richard Clarida & Jordi Gali & Mark Gertler, 1999.
"The Science of Monetary Policy: A New Keynesian Perspective ,"
Journal of Economic Literature ,
American Economic Association, vol. 37(4), pages 1661-1707, December.
[Downloadable!] (restricted)
Other versions:
Clarida, Richard & Galí, Jordi & Gertler, Mark, 1999.
"The Science of Monetary Policy: A New Keynesian Perspective ,"
CEPR Discussion Papers
2139, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Clarida, R. & Gali, J. & Gertler, M., 1999.
"The Science of Monetary Policy: A New Keynesian Perspective ,"
Working Papers
99-13, C.V. Starr Center for Applied Economics, New York University.
[Downloadable!] Richard Clarida & Jordi Galí & Mark Gertler, 1997.
"The Science of Monetary Policy: A New Keynesian Perspective ,"
Economics Working Papers
356, Department of Economics and Business, Universitat Pompeu Fabra, revised Apr 1999.
[Downloadable!] Richard Clarida & Jordi Gali & Mark Gertler, 1999.
"The Science of Monetary Policy: A New Keynesian Perspective ,"
NBER Working Papers
7147, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Evans, George W & Honkapohja, Seppo & Marimon, Ramon, 1996.
"Convergence in Monetary Inflation Models with Heterogeneous Learning Rules ,"
CEPR Discussion Papers
1310, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Thomas J. Sargent & Noah William, 2005.
"Impacts of Priors on Convergence and Escapes from Nash Inflation ,"
Review of Economic Dynamics ,
Elsevier for the Society for Economic Dynamics, vol. 8(2), pages 360-391, April.
[Downloadable!] (restricted)
Other versions: Jean-Michel Grandmont, 1998.
"Expectations Formation and Stability of Large Socioeconomic Systems ,"
Econometrica ,
Econometric Society, vol. 66(4), pages 741-782, July.
Bennett T. McCallum & Edward Nelson, 1998.
"Performance of Operational Policy Rules in an Estimated Semi-Classical Structural Model ,"
NBER Working Papers
6599, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions: Evans, George W. & Honkapohja, Seppo, 1996.
"Least squares learning with heterogeneous expectations ,"
Economics Letters ,
Elsevier, vol. 53(2), pages 197-201, November.
[Downloadable!] (restricted)
Evans, George W & Honkapohja, Seppo, 2002.
"Monetary Policy, Expectations and Commitment ,"
CEPR Discussion Papers
3434, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Other versions:
George W. Evans & Seppo Honkapohja, 2002.
"Monetary Policy, Expectations and Commitment ,"
University of Oregon Economics Department Working Papers
2005-11, University of Oregon Economics Department, revised 06 Apr 2005.
[Downloadable!] George W. Evans & Seppo Honkapohja, 2002.
"Monetary policy; expectations and commitment ,"
Working Paper Series
124, European Central Bank.
[Downloadable!] George W. Evans & Seppo Honkapohja, 2002.
"Monetary Policy, Expectations and Commitment ,"
University of Oregon Economics Department Working Papers
2002-11, University of Oregon Economics Department, revised 01 Feb 2004.
[Downloadable!] George W. Evans & Seppo Honkapohja, 2006.
"Monetary Policy, Expectations and Commitment ,"
Scandinavian Journal of Economics ,
Blackwell Publishing, vol. 108(1), pages 15-38, 03.
[Downloadable!] (restricted) Honkapohja, Seppo & Mitra, Kaushik, 2003.
"Learning with bounded memory in stochastic models ,"
Journal of Economic Dynamics and Control ,
Elsevier, vol. 27(8), pages 1437-1457, June.
[Downloadable!] (restricted)
Other versions:
Seppo Honkapohja & Kaushik Mitra, .
"Learning with Bounded Memory in Stochastic Models ,"
Discussion Papers
00/42, Department of Economics, University of York.
[Downloadable!] Kaushik Mitra & Seppo Honkapohja, 1999.
"Learning with Bounded Memory in Stochastic Models ,"
Computing in Economics and Finance 1999
221, Society for Computational Economics.
[Downloadable!] Honkapohja, S. & Mitra, K., 1999.
"Learning with Bounded Memory in Stochastic Models ,"
University of Helsinki, Department of Economics
456, Department of Economics.
Moreno Diego & Walker Mark, 1994.
"Two Problems in Applying Ljung's Projection Algorithms to the Analysis of Decentralized Learning ,"
Journal of Economic Theory ,
Elsevier, vol. 62(2), pages 420-427, April.
[Downloadable!] (restricted)
Evans, George W & Honkapohja, Seppo, 1998.
"Economic Dynamics with Learning: New Stability Results ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 65(1), pages 23-44, January.
[Downloadable!] (restricted)
Other versions: Carlo Monticelli & Oreste Tristani, 1999.
"What does the single monetary policy do? A SVAR benchmark for the European Central Bank ,"
Working Paper Series
2, European Central Bank.
[Downloadable!]
Johnson, Charles R., 1974.
"Sufficient conditions for D-stability ,"
Journal of Economic Theory ,
Elsevier, vol. 9(1), pages 53-62, September.
[Downloadable!] (restricted)
Brock, William A. & de Fontnouvelle, Patrick, 2000.
"Expectational diversity in monetary economies1 ,"
Journal of Economic Dynamics and Control ,
Elsevier, vol. 24(5-7), pages 725-759, June.
[Downloadable!] (restricted)
Other versions: Evans, G.W. & Honkapohja, S., 1998.
"Stochastic Gradient Learning in the Cobweb Model ,"
University of Helsinki, Department of Economics
438, Department of Economics.
Other versions: Grandmont Jean-michel & Laroque G, 1990.
"Economic dynamics with learning : some instability examples ,"
CEPREMAP Working Papers (Couverture Orange)
9007, CEPREMAP.
Marcet, Albert & Sargent, Thomas J, 1989.
"Convergence of Least-Squares Learning in Environments with Hidden State Variables and Private Information ,"
Journal of Political Economy ,
University of Chicago Press, vol. 97(6), pages 1306-22, December.
[Downloadable!] (restricted)
George W. Evans & Seppo Honkapohja, 2003.
"Adaptive learning and monetary policy design ,"
Proceedings ,
Federal Reserve Bank of Cleveland, pages 1045-1084.
Other versions:
George W. Evans & Seppo Honkapohja, 2002.
"Adaptive Learning and Monetary Policy Design ,"
University of Oregon Economics Department Working Papers
2002-18, University of Oregon Economics Department, revised 04 Mar 2004.
[Downloadable!] George W. Evans & Seppo Honkapohja, 2004.
"Adaptive learning and monetary policy design ,"
Macroeconomics
0405008, EconWPA.
[Downloadable!] Evans, George W & Honkapohja, Seppo, 2003.
"Adaptive Learning and Monetary Policy Design ,"
CEPR Discussion Papers
3962, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Evans, George W. & Honkapohja, Seppo, 2002.
"Adaptive learning and monetary policy design ,"
Research Discussion Papers
29/2002, Bank of Finland.
[Downloadable!] Honkapohja, Seppo & Mitra, Kaushik, 2002.
"Performance of monetary policy with internal central bank forecasting ,"
Research Discussion Papers
3/2002, Bank of Finland.
[Downloadable!]
Other versions:
Kaushik Mitra & Seppo Honkapohja, 2004.
"Performance of Monetary Policy with Internal Central Bank Forecasting ,"
Royal Holloway, University of London: Discussion Papers in Economics
04/18, Department of Economics, Royal Holloway University of London, revised Jul 2004.
[Downloadable!] Seppo Honkapohja & Kaushik Mitra, 2002.
"Performance of monetary policy with nternal Central Bank forecasting ,"
Working Paper Series
127, European Central Bank.
[Downloadable!] Honkapohja, Seppo & Mitra, Kaushik, 2005.
"Performance of monetary policy with internal central bank forecasting ,"
Journal of Economic Dynamics and Control ,
Elsevier, vol. 29(4), pages 627-658, April.
[Downloadable!] (restricted) Marimon, Ramon & Sunder, Shyam, 1993.
"Indeterminacy of Equilibria in a Hyperinflationary World: Experimental Evidence ,"
Econometrica ,
Econometric Society, vol. 61(5), pages 1073-107, September.
[Downloadable!] (restricted)
Other versions: Bennett T. McCallum & Edward Nelson, 2004.
"Timeless perspective vs. discretionary monetary policy in forward-looking models ,"
Review ,
Federal Reserve Bank of St. Louis, issue Mar, pages 43-56.
[Downloadable!]
Other versions: George W. Evans & Seppo Honkapohja, 2003.
"Expectations and the Stability Problem for Optimal Monetary Policies ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 70(4), pages 807-824, October.
[Downloadable!] (restricted)
Other versions:
Evans, George W. & Honkapohja, Seppo, 2000.
"Expectations and the stability problem for optimal monetary policies ,"
Discussion Paper Series 1: Economic Studies
2000,10, Deutsche Bundesbank, Research Centre.
[Downloadable!] Evans, George W & Honkapohja, Seppo, 2001.
"Expectations and the Stability Problem for Optimal Monetary Policies ,"
CEPR Discussion Papers
2805, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) George W. Evans & Seppo Honkapohja, 2001.
"Expectations and the Stability Problem for Optimal Monetary Policies ,"
University of Oregon Economics Department Working Papers
2001-6, University of Oregon Economics Department, revised 03 Aug 2001.
[Downloadable!] Honkapohja, S. & Evans, G.W., 2000.
"Expectations and the Stability Problem for Optimal Monetary Policies ,"
University of Helsinki, Department of Economics
481, Department of Economics.
Chryssi Giannitsarou, 2003.
"Heterogeneous Learning ,"
Review of Economic Dynamics ,
Elsevier for the Society for Economic Dynamics, vol. 6(4), pages 885-906, October.
[Downloadable!] (restricted)
Marcet, Albert & Sargent, Thomas J., 1989.
"Convergence of least squares learning mechanisms in self-referential linear stochastic models ,"
Journal of Economic Theory ,
Elsevier, vol. 48(2), pages 337-368, August.
[Downloadable!] (restricted)
Michael Woodford, 1996.
"Control of the Public Debt: A Requirement for Price Stability? ,"
NBER Working Papers
5684, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Evans, George W & Honkapohja, Seppo, 1995.
"Local Convergence of Recursive Learning to Steady States and Cycles in Stochastic Nonlinear Models ,"
Econometrica ,
Econometric Society, vol. 63(1), pages 195-206, January.
[Downloadable!] (restricted)
R. Guesnerie, 2002.
"Anchoring Economic Predictions in Common Knowledge ,"
Econometrica ,
Econometric Society, vol. 70(2), pages 439-480, March.
[Downloadable!] (restricted)
Other versions: Negroni, Giorgio, 2003.
"Adaptive expectations coordination in an economy with heterogeneous agents ,"
Journal of Economic Dynamics and Control ,
Elsevier, vol. 28(1), pages 117-140, October.
[Downloadable!] (restricted)
Evans, George W. & Honkapohja, Seppo & Sargent, Thomas J., 1993.
"On the preservation of deterministic cycles when some agents perceive them to be random fluctuations ,"
Journal of Economic Dynamics and Control ,
Elsevier, vol. 17(5-6), pages 705-721.
[Downloadable!] (restricted)
Bray, Margaret M & Savin, Nathan E, 1986.
"Rational Expectations Equilibria, Learning, and Model Specification ,"
Econometrica ,
Econometric Society, vol. 54(5), pages 1129-60, September.
[Downloadable!] (restricted)
George W. Evans & Roger Guesnerie, 1999.
"Coordination on saddle path solutions: the eductive viewpoint ,"
University of Oregon Economics Department Working Papers
2001-7, University of Oregon Economics Department, revised 15 May 2001.
[Downloadable!]
Jan Marc Berk & Peter A.G. Vanbergeijk, 2000.
"Is the yield curve a useful information variable for the Eurosystem? ,"
Working Paper Series
11, European Central Bank.
[Downloadable!]
Evans George W. & Guesnerie Roger, 1993.
"Rationalizability, Strong Rationality, and Expectational Stability ,"
Games and Economic Behavior ,
Elsevier, vol. 5(4), pages 632-646, October.
[Downloadable!] (restricted)
Other versions: Fourgeaud, Claude & Gourieroux, Christian & Pradel, Jacqueline, 1986.
"Learning Procedures and Convergence to Rationality ,"
Econometrica ,
Econometric Society, vol. 54(4), pages 845-68, July.
[Downloadable!] (restricted)
Other versions:
Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.) This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page .
Access and
download statistics Did you know? You can import bibliographic info in various formats into you bibliographic tool, or just into your word processor. See under "publisher info" on each abstract page.
This page was last updated on 2008-8-27.
This information is provided to you by IDEAS at the Department of Economics , College of Liberal Arts and Sciences , University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics .