Abstract
This paper analyzes a model characterized by multiple equilibria under bounded rationality in a stochastic and in a deterministic setting. We want to address the following questions: does memory of the learning process help to learn Rational Expectational Equilibria (REE)? does memory affect the selection of the equilibria according to the expectational stability criterion?
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Similar content being viewed by others
References
Balasko, R.: 1996, ‘Stability of competitive equilibria with respect to recursive and learning processes’. Journal of Economic Theory 68, 319–348.
Barucci, E.: 1997, ‘Exponentially fading memory learning in forward looking economic models’. University of Florence, Florence.
Barucci, E. and Landi, L.: 1997, ‘Least mean squares learning in self-referential linear stochastic models’. Economics Letters 57, 313–317.
Barucci, E. and Landi, L.: 1996, ‘Nonlinear versus linear learning devices: a procedural perspective’. University of Florence, Florence.
Bischi, G. and Gardini, L.: 1995, ‘Mann iterations reducible to plane endomorphisms’. University of Urbino, Urbino.
Evans, G. and Honkapohja, S.: 1996, ‘Economic dynamics with learning: New stability results’. University of Oregon, Oregon.
Evans, G.: 1986, ‘Selection criteria for models with non-uniqueness’. Journal of Monetary Economics 23, 297–317.
Evans, G. and Honkapohja, S.: 1995, ‘Increasing social returns, learning, and bifurcation phenomena’. In: Kirman, A. and Salmon, M. (Eds.), Learning and Rationality in Economics, Oxford: Blackwell, pp. 216–235.
Gauthier, S.: 1997, ‘Learning dynamics and the memory effect’. Delta, Paris.
Grandmont, J. and Laroque, G.: 1991, ‘Economic dynamics with learning: Some instability examples’. In: Barnett W., Cornet B., D’Aspremont C. J. and Mas-Colell, A. (Eds.), Equilibrium Theory and Applications, Cambrdige: Cambridge University press, pp. 256–288.
Ljiung, L.: 1977, ‘Analysis of recursive stochastic algorithms’. IEEE Transactions on Automatic Control 4, 551–575.
Marcet, A. Sargent, T.: 1989, ‘Convergence of Least Squares learning mechanisms in self—referential linear stochastic models’. Journal of Economic Theory 48, 337–368.
McCallum, B.: 1989, Monetary Economics, New York: Maxwell MacMillian International Editions.
Mira, C., Gardini, L., Barugola, A. and Cathala, J.: 1996, Chaotic Dynamics in Two-Dimensional Noninvertible Maps, Singapore: World Scientific.
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1999 Springer Science+Business Media New York
About this chapter
Cite this chapter
Barucci, E. (1999). Memory, Learning and the Selection of Equilibria in a Model with Non-Uniqueness. In: Brenner, T. (eds) Computational Techniques for Modelling Learning in Economics. Advances in Computational Economics, vol 11. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-5029-7_10
Download citation
DOI: https://doi.org/10.1007/978-1-4615-5029-7_10
Publisher Name: Springer, Boston, MA
Print ISBN: 978-1-4613-7285-1
Online ISBN: 978-1-4615-5029-7
eBook Packages: Springer Book Archive