Saddlepath learning

A-Tier
Journal: Journal of Economic Theory
Year: 2011
Volume: 146
Issue: 4
Pages: 1500-1519

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Saddlepath learning occurs when agents learn adaptively using a perceived law of motion that has the same form as the saddlepath relationship in rational expectations equilibrium. Under saddlepath learning, we obtain a completely general relationship between determinacy and e-stability, and generalise minimum state variable results previously derived only under full information. When the system is determinate, we show that a learning process based on the saddlepath is always e-stable. When the system is indeterminate, we find there is a unique MSV solution that is iteratively e-stable. However, in this case there is a sunspot solution that is learnable as well. We conclude by demonstrating that our results hold for any information set.

Technical Details

RePEc Handle
repec:eee:jetheo:v:146:y:2011:i:4:p:1500-1519
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25