Determinacy and e-stability under reduced-form learning

Seonghoon Cho

doi:10.1016/j.econlet.2015.01.020

Determinacy and e-stability under reduced-form learning

Seonghoon Cho

Department of Economics

Research output: Contribution to journal › Article › peer-review

Abstract

Under reduced-form learning, agents are endowed with an aggregate model, and rational expectations are then replaced with subjective expectations. This paper demonstrates that the reduced-form learning approach may be arbitrary in that a particular representation of aggregate dynamics has particular e-stability properties even though the underlying model's behavior is meant to be unique.

Original language	English
Pages (from-to)	69-71
Number of pages	3
Journal	Economics Letters
Volume	128
DOIs	https://doi.org/10.1016/j.econlet.2015.01.020
Publication status	Published - 2015 Mar 1

Bibliographical note

Publisher Copyright:
© 2015 Elsevier B.V.

All Science Journal Classification (ASJC) codes

Finance
Economics and Econometrics

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10.1016/j.econlet.2015.01.020

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Determinacy and e-stability under reduced-form learning

Abstract

Bibliographical note

All Science Journal Classification (ASJC) codes

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