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Learning and the Saddle Point Property

Author

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  • Stéphane Gauthier

    (CREST-INSEE - Centre de Recherche en Economie et en Statistique - Institut national de la statistique et des études économiques (INSEE), ERMES - Equipe de recherche sur les marches, l'emploi et la simulation - UP2 - Université Panthéon-Assas - CNRS - Centre National de la Recherche Scientifique)

Abstract

This note shows that there are close connections between the determinacy of a stationary state equilibrium and its stability under learning whenever agents try to estimate both the law of motion of the state variable and the stationary state value.

Suggested Citation

  • Stéphane Gauthier, 2001. "Learning and the Saddle Point Property," Post-Print hal-00731163, HAL.
    • Handle: RePEc:hal:journl:hal-00731163
    DOI: 10.1016/S0165-1765(01)00501-8
    Note: View the original document on HAL open archive server: https://hal.science/hal-00731163
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    References listed on IDEAS

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    1. Jean-Michel Grandmont, 1991. "Temporary Equilibrium: Money, Expectations and Dynamics," International Economic Association Series, in: Lionel W. McKenzie & Stefano Zamagni (ed.), Value and Capital: Fifty Years Later, chapter 1, pages 3-30, Palgrave Macmillan.
    2. Grandmont, Jean-Michel & Laroque, Guy, 1986. "Stability of cycles and expectations," Journal of Economic Theory, Elsevier, vol. 40(1), pages 138-151, October.
    3. Barnett,William A. & Geweke,John & Shell,Karl (ed.), 1989. "Economic Complexity: Chaos, Sunspots, Bubbles, and Nonlinearity," Cambridge Books, Cambridge University Press, number 9780521355636, October.
    4. Bartholomew J. Moore, 1993. "Least-Squares Learning and the Stability of Equilibria with Externalities," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(1), pages 197-208.
    5. Duffy John, 1994. "On Learning and the Nonuniqueness of Equilibrium in an Overlapping Generations Model with Fiat Money," Journal of Economic Theory, Elsevier, vol. 64(2), pages 541-553, December.
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