Notes on Agents’ Behavioral Rules Under Adaptive Learning and Studies of Monetary Policy

Seppo Honkapohja; Kaushik Mitra; George W. Evans

doi:10.1093/acprof:oso/9780199666126.003.0005

Notes on Agents’ Behavioral Rules Under Adaptive Learning and Studies of Monetary Policy

Seppo Honkapohja, Kaushik Mitra, George W. Evans

Economics

Research output: Chapter in Book/Report/Conference proceeding › Chapter

Abstract

This chapter tries to clarify some discussions on the formulation of individual intertemporal behaviour under adaptive learning in representative agent models. The authors first discuss two suggested approaches and related issues in the context of a simple consumption‐saving model. Secondly, they show that the analysis of learning in the NewKeynesian monetary policy model based on “Euler equations” provides a consistent and valid approach.

Original language	English
Title of host publication	Macroeconomics at the Service of Public Policy
Editors	Thomas Sargent, Jouko Vilmunen
Publisher	Oxford University Press
Chapter	4
ISBN (Print)	9780199666126
DOIs	https://doi.org/10.1093/acprof:oso/9780199666126.003.0005
Publication status	Published - 2013

Keywords

Euler equation learning
subjective and rational expectations
intertemporal budget constraint
temporary equilibria
learning dynamics

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10.1093/acprof:oso/9780199666126.003.0005Licence: None: All rights reserved

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title = "Notes on Agents{\textquoteright} Behavioral Rules Under Adaptive Learning and Studies of Monetary Policy",

abstract = "This chapter tries to clarify some discussions on the formulation of individual intertemporal behaviour under adaptive learning in representative agent models. The authors first discuss two suggested approaches and related issues in the context of a simple consumption‐saving model. Secondly, they show that the analysis of learning in the NewKeynesian monetary policy model based on “Euler equations” provides a consistent and valid approach.",

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AU - Mitra, Kaushik

AU - Evans, George W.

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N2 - This chapter tries to clarify some discussions on the formulation of individual intertemporal behaviour under adaptive learning in representative agent models. The authors first discuss two suggested approaches and related issues in the context of a simple consumption‐saving model. Secondly, they show that the analysis of learning in the NewKeynesian monetary policy model based on “Euler equations” provides a consistent and valid approach.

AB - This chapter tries to clarify some discussions on the formulation of individual intertemporal behaviour under adaptive learning in representative agent models. The authors first discuss two suggested approaches and related issues in the context of a simple consumption‐saving model. Secondly, they show that the analysis of learning in the NewKeynesian monetary policy model based on “Euler equations” provides a consistent and valid approach.

KW - Euler equation learning

KW - subjective and rational expectations

KW - intertemporal budget constraint

KW - temporary equilibria

KW - learning dynamics

U2 - 10.1093/acprof:oso/9780199666126.003.0005

DO - 10.1093/acprof:oso/9780199666126.003.0005

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BT - Macroeconomics at the Service of Public Policy

A2 - Sargent, Thomas

A2 - Vilmunen, Jouko

PB - Oxford University Press

ER -

Notes on Agents’ Behavioral Rules Under Adaptive Learning and Studies of Monetary Policy

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