Title of article :
Bounded memory, overparameterized forecast rules, and instability
Author/Authors :
Christophre Georges، نويسنده ,
Issue Information :
روزنامه با شماره پیاپی سال 2008
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
Journal title :
Economics Letters