Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/78341 
Authors: 
Year of Publication: 
1997
Series/Report no.: 
Diskussionsbeitrag No. 207
Publisher: 
Universität Hannover, Wirtschaftswissenschaftliche Fakultät, Hannover
Abstract: 
This paper analyzes the relationship between the expectational stability of rational expectations equilibria and the possible convergence of adaptive learning processes. Results obtained using recursive least squares lead to the conjecture that a correspondence between these both selection criteria exists. This paper demonstrates on the basis of a simple linear model and an alternative learning procedure that such a conjecture would be incorrect: there exist learning procedures that may converge to rational expectations equilibria which are not expectationally stable.
Subjects: 
Multiple equilibria
Learning
Expectational stability
JEL: 
C45
D83
Document Type: 
Working Paper

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