Restricted perception equilibria and rational expectation equilibrium

This paper studies a cobweb economy in which agents make decisions using a misspecified model of their stochastic environment. Specifically, the agents’ model of the price process is restricted to be a moving average of order q (MA( q)), minimizing the mean square of their forecast error. We prove e...

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Bibliographic details
Volume: 31
Main Author: Gregoir, Stéphane
Weill, Pierre-Olivier
Format: Journal Article
Language: English
Zielgruppe: Academic
Place of publication: AMSTERDAM Elsevier B.V 2007
ELSEVIER SCIENCE BV
Elsevier
published in: Journal of economic dynamics & control Vol. 31; no. 1; pp. 81 - 109
Data of publication: 2007
ISSN: 0165-1889
1879-1743
EISSN: 1879-1743
Discipline: Economics
Series: Journal of Economic Dynamics and Control
Subjects:
D84
C62
Online Access: available in Bonn?
Database: Web of Knowledge
Social Sciences Citation Index
Web of Science
Web of Science - Social Sciences Citation Index - 2007
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