We study forward-looking economic models assuming that agents take one step ahead expectations looking back k time periods. We show that the dynamics of the economy with such an expectation function are characterized by the coexistence of perfect foresight and nonperfect foresight cycles. The stability of all these periodic solutions under bounded rationality is related to the stability of the ...

We examine robustness of stability under learning to observability of exogenous shocks. Regardless of observability assumptions, the minimal state variable solution is robustly stable under learning provided the expectational feedback is not both positive and large, while the nonfundamental solution is never robustly stable. Overlapping generations and New Keynesian models are considered and co...

The papers in this symposium address the issue of multiple equilibria that can be induced by monetary policy in models with capital accumulation. In particular they examine how the “Taylor Principle”, under which interest rates respond more than proportionately to increases in inflation, can generate multiple equilibria. They also explore the design of policies to avoid the problem of multiple ...

In this paper the authors explore the ability of simple monetary models with bounded rationality to account for the joint distribution of money and prices. They impose restrictions on the size of the mistakes agents can make in equilibrium and argue that countries with high inflation are likely to satisfy these restrictions. Their computations show that the model with bounded rationality does n...

Kline, M. A. (2015) How to learn about teaching: An evolutionary framework for the study of teaching behavior in humans and other animals. Behavioral and Brain Sciences 38:e31. Pasquinelli, E., Zalla, T., Gvozdic, K., Potier-Watkins, C. & Piazza, M. (2015) Mind, brain, and teaching: Some directions for future research. Behavioral and Brain Sciences 38: e54. doi.org/10.1017/S0140525X14000697. BE...

When (a) holds it is easy to characterize dissipativity in an explicit way. In fact it is easy to prove that the set of assumptions (a)-(b) is equivalent to (a)-(b*) with (b*) There exists R > 0 such that IorFi(t, Rei) d t < 0 ; 1 < i _ < 3 ; where le l,e2,e31 denotes the canonical basis of ~3. As a consequence of the theorem we obtain a result that is reminiscent of Massera 's theorem for plan...

In this paper, we re-examine the empirical relevance of the cost channel of monetary policy. We employ recently developed moment-conditions inference procedures, which provide a more e¢ cient and reliable econometric framework than in previous literature. Using US data, our results suggest that there is no substantial evidence for the existence of a cost channel. Keywords: Cost channel; Phillip...

This paper presents an evolutionary growth theory that captures the interplay between the evolution of mankind and economic growth since the emergence of the human species. This uni"ed theory encompasses the observed evolution of population, technology and income per capita in the long transition from an epoch of Malthusian stagnation to sustained economic growth. 2001 Elsevier Science B.V. All...