• search hit 30 of 86
Back to Result List

E-stability and stability of adaptive learning in models of asymetric information

  • The paper demonstrates how the E–stability principle introduced by Evans and Honkapohja can be applied to models with heterogeneous and private information in order to assess the stability of rational expectations equilibria under learning. The paper extends already known stability results for the Grossman and Stiglitz model to a more general case with many differentially informed agents and to the case where information is endogenously acquired by optimizing agents. In both cases it turns out that the rational expectations equilibrium of the model is inherently E-stable and thus locally stable under recursive least squares learning.

Download full text files

Export metadata

Additional Services

Share in Twitter Search Google Scholar
Author:Maik Heinemann
URL: https://pub-data.leuphana.de/frontdoor/index/index/docId/535
Document Type:ResearchPaper
Year of Completion:2007
Date of Publication (online):2007/12/21
Release Date:2007/12/21
Tag:Eductive Stability; Learning; Rational Expectations
GND Keyword:Lernen; Erwartung; Stabilität
Institutes:Universität / Frühere Fachbereiche
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft