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- W917202852 abstract "Abstract This paper investigates the learnability of an equilibrium with private information. Agents of each type have their own private information about an exogenous variable and conduct adaptive learning with a heterogeneously misspecified perceived laws of motion (PLM) that includes only this variable. The paper shows that the existence of private information has a nonnegative impact on the learnability of the equilibrium; that is, the condition for learnability is unaffected or relaxed by heterogeneity and/or misspecification in PLMs caused by private information. In a New Keynesian model with private information about fundamental shocks, the learnability of the equilibrium is ensured by the Taylor principle of monetary policy. The paper also confirms that these results hold true not only in the presence of private information, but also in a variety of informational structures." @default.
- W917202852 created "2016-06-24" @default.
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- W917202852 date "2015-10-01" @default.
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- W917202852 title "Learnability of an equilibrium with private information" @default.
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- W917202852 doi "https://doi.org/10.1016/j.jedc.2015.06.010" @default.
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