Advanced Search
MyIDEAS: Login

Convergence of Adaptive Learning Models of Pure Exchange

Contents:

Author Info

  • Jan Wenzelburger

    (Universitat Bielefeld)

Abstract

This paper develops an adaptive learning scheme for a standard version of the overlapping generations model with pure exchange using the notion of an error function. Trajectories generated by this scheme converge globally to the monetary steady state for arbitrary consumers' savings behavior. The resulting learning dynamics is therefore globally asymptotically stable. This shows that with the efficient use of structural knowledge on the market mechanism, learning schemes which generate complex dynamics with non-vanishing forecast errors such as ordinary least squares can be avoided. This finding holds for all possible parameterizations guaranteeing the existence of a monetary steady state and generalizes to all one-dimensional models of the Cobweb type.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://fmwww.bc.edu/RePEc/es2000/1070.pdf
File Function: main text
Download Restriction: no

Bibliographic Info

Paper provided by Econometric Society in its series Econometric Society World Congress 2000 Contributed Papers with number 1070.

as in new window
Length:
Date of creation: 01 Aug 2000
Date of revision:
Handle: RePEc:ecm:wc2000:1070

Contact details of provider:
Phone: 1 212 998 3820
Fax: 1 212 995 4487
Email:
Web page: http://www.econometricsociety.org/pastmeetings.asp
More information through EDIRC

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Patrick Leoni, 2009. "Market crashes, speculation and learning in financial markets," Economic Theory, Springer, vol. 39(2), pages 217-229, May.
  2. Florian Wagener & Jan Tuinstra, 2004. "On Learning Equilibria," Computing in Economics and Finance 2004 217, Society for Computational Economics.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ecm:wc2000:1070. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.