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Decision Rules with Bounded Memory

โœ Scribed by Rajiv Sarin


Book ID
112257966
Publisher
Elsevier Science
Year
2000
Tongue
English
Weight
126 KB
Volume
90
Category
Article
ISSN
0022-0531

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Learning with bounded memory in stochastic frameworks is incomplete in the sense that the learning dynamics cannot converge to a rational expectations equilibrium (REE). The properties of dynamics arising from such rules are studied for standard models with steady states. If the REE in linear models