Expectations, Learning and Business Cycle Fluctuations

By Stefano Eusepi, Bruce Preston. 2011

336 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/e76b53fb2b9363c5d97d350720fc9a04d2eba183

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Citations in the corpus

House Prices, Credit Growth, and Excess Volatility: Implications for Monetary and Macroprudential Policy (2013, background): “…exponentially-declining weights to past data when constructing forecasts of future variables.19 Orphanides and Williams (2005), Milani (2007), and Eusepi and Preston (2011) all nd that adaptive learning models are more successful than rational expectations models in capturing several…”
A Behavioral New Keynesian Model (2020, neutral): “Versions of this proposition were proven a number of times with minor variants (e.g. Eusepi and Preston (2011); Woodford (2013); Gabaix (2016a); Auclert (2019)), but for completeness let us derive it.”
Heterogeneity, learning and information stickiness in inflation expectations (2010, background): “Furthermore, Eusepi and Preston (2008) suggest that the gain might be comprised between 0:0015 and 0:0029.”
Learning from Inflation Experiences (2016, background): “5 Eusepi and Preston (2011) use a smaller gain to calibrate a stochastic growth model in which agents learn about wages and the return on capital.”
Natural Expectations, Macroeconomic Dynamics, and Asset Pricing (2012, background): “For example, see Sims (1998, 2003); Gabaix et al. (2006); Woodford (2009). 19.”
Macroeconomic Analysis Without the Rational Expectations Hypothesis (2013, background): “, 2000).(16) Apart from the use of the determinacy result as a criterion for the choice of a monetary policy rule, the predicted character of the fluctuations due to self-fulfilling expectations when the Taylor Principle is not satisfied has been proposed by some as a positive theory of the aggregat”
Learning and Macroeconomics (2009, background): “Under RE, the optimal choice takes the form θ = θ (ω, (1− 6For surveys see Evans and Honkapohja (2003a), Bullard (2006), and Evans and Honkapohja (2007).”
Stock Price Booms and Expected Capital Gains (2017, neutral): “In the learning literature, the standard approach to resolve this issue consists of assuming that agents use only lagged endogenous variables to update model estimates (Eusepi and Preston (2011), Evans and Honkapohja (2001), Marcet and Nicolini (2003), Sargent, Williams and Zha (2009)).”
Expectation Shocks and Learning as Drivers of the Business Cycle (2011, neutral): “, Milani, 2007a, Eusepi and Preston, 2008). The learning specification used in this paper is particularly related to the one used in Bullard et al. (2008), who incorporate what that they define as “judgement” in the agents’ forecasting model.”