Heterogeneous expectations, sunspot equilibria and their fragility
In a simple, univariate forward looking model, we show how a class of sunspot equilibria can depend on the relative fraction of agents under heterogeneous expectations. We then investigate if such equilibrium could be brought about by endogenous predictor choice dynamics.
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- George W. Evans & Seppo Honkapohja, 2002.
"Expectational Stability of Stationary Sunspot Equilibria in a Forward-looking Linear Model,"
University of Oregon Economics Department Working Papers
2001-9, University of Oregon Economics Department, revised 14 Jan 2002.
- Evans, George W. & Honkapohja, Seppo, 2003. "Expectational stability of stationary sunspot equilibria in a forward-looking linear model," Journal of Economic Dynamics and Control, Elsevier, vol. 28(1), pages 171-181, October.
- William Branch & George W. Evans, 2007.
"Model Uncertainty and Endogenous Volatility,"
Review of Economic Dynamics,
Elsevier for the Society for Economic Dynamics, vol. 10(2), pages 207-237, April.
- Wiliam Branch & George W. Evans, 2005. "Model Uncertainty and Endogenous Volatility," University of Oregon Economics Department Working Papers 2005-21, University of Oregon Economics Department, revised 26 Oct 2006.
- George W. Evans & William A. Branch, 2005. "Model Uncertainty and Endogenous Volatility," Computing in Economics and Finance 2005 33, Society for Computational Economics.
- Evans, George W. & McGough, Bruce, 2005.
"Stable sunspot solutions in models with predetermined variables,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 29(4), pages 601-625, April.
- George W. Evans & Bruce McGough, 2002. "Stable Sunspot Solutions in Models with Predetermined Variables," University of Oregon Economics Department Working Papers 2002-16, University of Oregon Economics Department, revised 29 May 2003.
- Branch, William A. & Evans, George W., 2006.
"Intrinsic heterogeneity in expectation formation,"
Journal of Economic Theory,
Elsevier, vol. 127(1), pages 264-295, March.
- Bill Branch & George W. Evans, 2003. "Intrinsic Heterogeneity in Expectation Formation," University of Oregon Economics Department Working Papers 2003-32, University of Oregon Economics Department, revised 04 Oct 2004.
- George Evans & William Branch, 2003. "Intrinsic Heterogeneity in Expectation Formation," Computing in Economics and Finance 2003 312, Society for Computational Economics.
- Brock, W.A., 1995.
"A Rational Route to Randomness,"
9530, Wisconsin Madison - Social Systems.
- Berardi, Michele, 2007. "Heterogeneity and misspecifications in learning," Journal of Economic Dynamics and Control, Elsevier, vol. 31(10), pages 3203-3227, October.
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