This chapter examines the relationship between agent-based modeling and economic
decision-making experiments with human subjects. Both approaches exploit controlled …

This chapter provides a survey of the recent work on learning in the context of
macroeconomics. Learning has several roles. First, it provides a boundedly rational model of …

The substantially revised fourth edition of a widely used text, offering both an introduction to
recursive methods and advanced material, mixing tools and sample applications. Recursive …

One version of the consumption-based asset pricing model implies a linear relation between
expected returns and expected consumption growth. This paper provides evidence that the …

We use a model of boundedly rational learning to account for the observations of recurrent
hyperinflations in the 1980's. In a standard monetary model we replace the assumption of …

There may be both a high and a low inflation equilibrium when the government finances the
deficit through seigniorage. Under rational expectations the high inflation equilibrium is …

This paper considers whether monetary and fiscal policy may sensibly be formulated
independently of one another, and argues that the reasons for the two to be interconnected …

We study the existence and robustness of expectationally driven price volatility in
experimental overlap** generation economies. In the theoretical model under study there …

The introduction of the precious metals for the purposes of money may with truth be
considered as one of the most important steps towards the improvement of commerce, and …

This paper demonstrates that an asset pricing model with least-squares learning can lead to
bubbles and crashes as endogenous responses to the fundamentals driving asset prices …