Learning and the Saddle Point Property

Stéphane Gauthier (1, 2)

1 CREST-INSEE - Centre de Recherche en Economie et en Statistique
2 ERMES - Equipe de recherche sur les marches, l'emploi et la simulation

This note shows that there are close connections between the determinacy of a stationary state equilibrium and its stability under learning whenever agents try to estimate both the law of motion of the state variable and the stationary state value.

Mots clés: Rational expectations; Saddle path; Determinacy; Learning

Domaines: Economies et finances

Stéphane Gauthier. Learning and the Saddle Point Property. Economics Letters, 2001, 73 (3), pp.339-343. ⟨10.1016/S0165-1765(01)00501-8⟩. ⟨hal-00731163⟩