• Title of article

    Bounded memory, overparameterized forecast rules, and instability

  • Author/Authors

    Christophre Georges، نويسنده ,

  • Issue Information
    روزنامه با شماره پیاپی سال 2008
  • Pages
    7
  • From page
    129
  • To page
    135
  • Abstract
    We consider an environment in which traders with finite memory update their forecast rules at random intervals by OLS. In this context, overparameterization of the forecast rules can destabilize the learning dynamics. This instability tends to be attenuated by greater memory and less frequent updating.
  • Keywords
    Learning , Expectations , Agent-based modeling
  • Journal title
    Economics Letters
  • Serial Year
    2008
  • Journal title
    Economics Letters
  • Record number

    436378