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E-STABILITY DOES NOT IMPLY LEARNABILITY

Published online by Cambridge University Press:  28 April 2005

CHRYSSI GIANNITSAROU
CHRYSSI GIANNITSAROU
Affiliation:
University of Cambridge
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Abstract

The concept of E-stability is widely used as a learnability criterion in studies of macroeconomic dynamics with adaptive learning. In this paper, it is demonstrated, via a counterexample, that E-stability generally does not imply learnability of rational expectations equilibria. The result indicates that E-stability may not be a robust device for equilibrium selection.

Keywords

Adaptive LearningE-StabilityLearnabilityRational Expectations Equilibria

Information

Type
NOTES
Information
Macroeconomic Dynamics , Volume 9 , Issue 2 , April 2005 , pp. 276 - 287
Copyright
© 2005 Cambridge University Press

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