Are Dynamically Inefficient Equilibria Learnable?

Abstract

We consider the stability under adaptive learning dynamics of steady state equilibria in Diamond’s (1965) overlapping generations growth model with capital and money. Interior steady state equilibria of this model can be either dynamically inefficient or dynamically efficient. We show that a necessary condition for an equilibrium of this model to be stable… (More)

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Cite this paper

@inproceedings{Duffy2011AreDI, title={Are Dynamically Inefficient Equilibria Learnable?}, author={John Duffy and Wei Xiao}, year={2011} }