English   español  
Please use this identifier to cite or link to this item: http://hdl.handle.net/10261/58342
Share/Impact:
Statistics
logo share SHARE logo core CORE   Add this article to your Mendeley library MendeleyBASE

Visualizar otros formatos: MARC | Dublin Core | RDF | ORE | MODS | METS | DIDL
Exportar a otros formatos:

Title

Social learning and rational expectations

AuthorsVives, Xavier
Issue Date1996
PublisherElsevier
CitationEuropean Economic Review 40(3-5): 589-601 (1996)
AbstractThis paper argues that some of the pathologies identified by the social learning literature are not robust. Incorrect herds need indivisibilities and signals of bounded precision to arise. In smooth models convergence to the correct action and full revelation of information obtains. However, in the presence of noise convergence is slow. Two robust properties of learning from others are identified. The first, a self-correcting property, responsible for the convergence (self-enhancing facet) at a slow rate (self-defeating facet). The second, the existence of an information externality responsible for herding and underinvestment in public information and relevant from the welfare point of view. The results imply that convergence to full-information equilibria in rational expectations market models may be slow. Nevertheless, this does not apply to models in which learning is mostly from the environment. Furthermore, appropriate market mechanisms may speed up convergence even when learning is from others.
URIhttp://hdl.handle.net/10261/58342
DOI10.1016/0014-2921(95)00072-0
Identifiersdoi: 10.1016/0014-2921(95)00072-0
issn: 0014-2921
Appears in Collections:(IAE) Artículos
Files in This Item:
File Description SizeFormat 
accesoRestringido.pdf15,38 kBAdobe PDFThumbnail
View/Open
Show full item record
Review this work
 

Related articles:


WARNING: Items in Digital.CSIC are protected by copyright, with all rights reserved, unless otherwise indicated.