Title: On learning to forecast in an endogenous growth model with externalities
Abstract: This paper investigates whether learning leads to `perfect foresight’ in a growth model that might present local indeterminacy of perfect foresight equilibria. The paper asserts that, under some parametric conditions on technology and preferences, equilibria under the assumption of learning converge to a limit point that is different from the one corresponding to perfect foresight equilibria. The paper also concludes that endogenous cycles may emerge in the economy with learning and in the economy with perfect foresight. However, the combination of parameters for which these fluctuations appear may differ in each economy.
Publication Year: 2001
Publication Date: 2001-08-01
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 2
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