Now showing items 1-5 of 5

    • Anticipated Fiscal Policy and Adaptive Learning 

      Evans, George W.; Honkapohja, Seppo; Kaushik, Mitra (Faculty of Economics, University of Cambridge, UK, 2007-02)
      We consider the impact of anticipated policy changes when agents form expectations using adaptive learning rather than rational expectations. To model this we assume that agents combine limited structural knowledge with a ...
    • Gains and Losses from Tax Competition with Migration 

      Honkapohja, Seppo; Turunen-Red, Arja (2004-06-16)
      We consider international labour (entrepreneur) mobility in a two-country overlapping-generations model. Interactions of decreasing and increasing returns in production yield multiple equilibria that are stable under ...
    • Generalized Stochastic Gradient Learning 

      Evans, George W.; Honkapohja, Seppo; Williams, Noah (2006-03-14)
      We study the properties of generalized stochastic gradient (GSG) learning in forwardlooking models. We examine how the conditions for stability of standard stochastic gradient (SG) learning both di1er from and are related ...
    • Liquidity Traps, Learning and Stagnation 

      Evans, George W.; Guse, Eran A.; Honkapohja, Seppo (Faculty of Economics, University of Cambridge, UK, 2007-06)
      We examine global economic dynamics under learning in a New Keynesian model in which the interest-rate rule is subject to the zero lower bound. Under normal monetary and fiscal policy, the intended steady state is locally ...
    • Near-Rational Exuberance 

      Bullard, James; Evans, George W.; Honkapohja, Seppo (2006-03-14)
      We study how the use of judgement or “add-factors” in macroeconomic forecasting may disturb the set of equilibrium outcomes when agents learn using recursive methods. We isolate conditions under which new phenomena, which ...