View in EDS PDF Full Text

Learning and Expectations in Macroeconomics

Saved in:
Bibliographic Details
Title: Learning and Expectations in Macroeconomics
Description: A crucial challenge for economists is figuring out how people interpret the world and form expectations that will likely influence their economic activity. Inflation, asset prices, exchange rates, investment, and consumption are just some of the economic variables that are largely explained by expectations. Here George Evans and Seppo Honkapohja bring new explanatory power to a variety of expectation formation models by focusing on the learning factor. Whereas the rational expectations paradigm offers the prevailing method to determining expectations, it assumes very theoretical knowledge on the part of economic actors. Evans and Honkapohja contribute to a growing body of research positing that households and firms learn by making forecasts using observed data, updating their forecast rules over time in response to errors. This book is the first systematic development of the new statistical learning approach. Depending on the particular economic structure, the economy may converge to a standard rational-expectations or a'rational bubble'solution, or exhibit persistent learning dynamics. The learning approach also provides tools to assess the importance of new models with expectational indeterminacy, in which expectations are an independent cause of macroeconomic fluctuations. Moreover, learning dynamics provide a theory for the evolution of expectations and selection between alternative equilibria, with implications for business cycles, asset price volatility, and policy. This book provides an authoritative treatment of this emerging field, developing the analytical techniques in detail and using them to synthesize and extend existing research.
Authors: George W. Evans, Seppo Honkapohja
Resource Type: eBook.
Subjects: Rational expectations (Economic theory), Economics--Methodology, Economics--Statistical methods
Categories: BUSINESS & ECONOMICS / Economic History
Database: eBook Collection (EBSCOhost)
FullText Links:
  – Type: ebook-pdf
Text:
  Availability: 0
Header DbId: nlebk
DbLabel: eBook Collection (EBSCOhost)
An: 81025
RelevancyScore: 972
AccessLevel: 6
PubType: eBook
PubTypeId: ebook
PreciseRelevancyScore: 972.249633789063
IllustrationInfo
ImageInfo – Size: thumb
  Target: https://rps2images.ebscohost.com/rpsweb/othumb?id=NL$81025$PDF&s=r
– Size: medium
  Target: https://rps2images.ebscohost.com/rpsweb/othumb?id=NL$81025$PDF&s=d
Items – Name: Title
  Label: Title
  Group: Ti
  Data: Learning and Expectations in Macroeconomics
– Name: Abstract
  Label: Description
  Group: Ab
  Data: A crucial challenge for economists is figuring out how people interpret the world and form expectations that will likely influence their economic activity. Inflation, asset prices, exchange rates, investment, and consumption are just some of the economic variables that are largely explained by expectations. Here George Evans and Seppo Honkapohja bring new explanatory power to a variety of expectation formation models by focusing on the learning factor. Whereas the rational expectations paradigm offers the prevailing method to determining expectations, it assumes very theoretical knowledge on the part of economic actors. Evans and Honkapohja contribute to a growing body of research positing that households and firms learn by making forecasts using observed data, updating their forecast rules over time in response to errors. This book is the first systematic development of the new statistical learning approach. Depending on the particular economic structure, the economy may converge to a standard rational-expectations or a'rational bubble'solution, or exhibit persistent learning dynamics. The learning approach also provides tools to assess the importance of new models with expectational indeterminacy, in which expectations are an independent cause of macroeconomic fluctuations. Moreover, learning dynamics provide a theory for the evolution of expectations and selection between alternative equilibria, with implications for business cycles, asset price volatility, and policy. This book provides an authoritative treatment of this emerging field, developing the analytical techniques in detail and using them to synthesize and extend existing research.
– Name: Author
  Label: Authors
  Group: Au
  Data: <searchLink fieldCode="AR" term="%22George+W%2E+Evans%22">George W. Evans</searchLink><br /><searchLink fieldCode="AR" term="%22Seppo+Honkapohja%22">Seppo Honkapohja</searchLink>
– Name: TypePub
  Label: Resource Type
  Group: TypPub
  Data: eBook.
– Name: Subject
  Label: Subjects
  Group: Su
  Data: <searchLink fieldCode="DE" term="%22Rational+expectations+%28Economic+theory%29%22">Rational expectations (Economic theory)</searchLink><br /><searchLink fieldCode="DE" term="%22Economics--Methodology%22">Economics--Methodology</searchLink><br /><searchLink fieldCode="DE" term="%22Economics--Statistical+methods%22">Economics--Statistical methods</searchLink>
– Name: SubjectBISAC
  Label: Categories
  Group: Su
  Data: <searchLink fieldCode="ZK" term="%22BUSINESS+%26+ECONOMICS+%2F+Economic+History%22">BUSINESS & ECONOMICS / Economic History</searchLink>
PLink https://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=nlebk&AN=81025
RecordInfo BibRecord:
  BibEntity:
    Classifications:
      – Code: 339
        Scheme: ddc
        Type: prePub
    Languages:
      – Code: eng
        Text: English
    Subjects:
      – SubjectFull: Rational expectations (Economic theory)
        Type: general
      – SubjectFull: Economics--Methodology
        Type: general
      – SubjectFull: Economics--Statistical methods
        Type: general
    Titles:
      – TitleFull: Learning and Expectations in Macroeconomics
        Type: main
  BibRelationships:
    HasContributorRelationships:
      – PersonEntity:
          Name:
            NameFull: George W. Evans
      – PersonEntity:
          Name:
            NameFull: Seppo Honkapohja
      – PersonEntity:
          Name:
            NameFull: George W. Evans
      – PersonEntity:
          Name:
            NameFull: Seppo Honkapohja
    IsPartOfRelationships:
      – BibEntity:
          Dates:
            – D: 01
              M: 01
              Type: published
              Y: 2001
            – D: 04
              M: 02
              Type: profile
              Y: 2014
          Identifiers:
            – Type: isbn-print
              Value: 9780691049212
            – Type: isbn-electronic
              Value: 9781400824267
          Titles:
            – TitleFull: Learning and Expectations in Macroeconomics
              Type: main
ResultId 1