Learning in Economic Systems with Expectations Feedback

Learning in Economic Systems with Expectations Feedback
Author :
Publisher : Springer Science & Business Media
Total Pages : 181
Release :
ISBN-10 : 9783540380504
ISBN-13 : 3540380507
Rating : 4/5 (507 Downloads)

Book Synopsis Learning in Economic Systems with Expectations Feedback by : Jan Wenzelburger

Download or read book Learning in Economic Systems with Expectations Feedback written by Jan Wenzelburger and published by Springer Science & Business Media. This book was released on 2006-09-22 with total page 181 pages. Available in PDF, EPUB and Kindle. Book excerpt: Recently economists have more and more focussed on scenarios in which agents' views of the world may be erroneous. These notes introduce the concept of perfect forecasting rules which provide best least-squares predictions along the evolution of an economic system. The framework for nonparametric adaptive learning schemes is developed and it is argued that plausible learning schemes should aim at estimating a perfect forecasting rule taking into account the correct feedback structure of an economy. A link is provided between the traditional rational-expectations view and recent behavioristic approaches.


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