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- W2041691840 abstract "We examine local stability under learning of stationary Markov sunspot equilibria (SSEs) in a simple dynamic nonlinear model. Necessary and sufficient conditions for local convergence of a recursive learning algorithm to SSEs are shown to be given (generically) by expectational stability (E-stability) conditions. We distinguish between weak and strong E-stability, where the latter requires stability also with respect to overparametrizations of the sunspot solution. Economic applications are given based on the overlapping generations model. Journal of Economic Literature Classification Numbers: D84, E32, C62." @default.
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- W2041691840 date "1994-10-01" @default.
- W2041691840 modified "2023-10-16" @default.
- W2041691840 title "On the Local Stability of Sunspot Equilibria under Adaptive Learning Rules" @default.
- W2041691840 doi "https://doi.org/10.1006/jeth.1994.1059" @default.
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