An Economy of Neural Networks: Learning from Heterogeneous Experiences

  title={An Economy of Neural Networks: Learning from Heterogeneous Experiences},
  author={A. A. Kuriksha},
This paper proposes a new way to model behavioral agents in dynamic macro-financial environments. Agents are described as neural networks and learn policies from idiosyncratic past experiences. I investigate the feedback between irrationality and past outcomes in an economy with heterogeneous shocks similar to Aiyagari (1994). In the model, the rational expectations assumption is seriously violated because learning of a decision rule for savings is unstable. Agents who fall into learning traps… 


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