Internal rationality, imperfect market knowledge and asset prices

DOI10.1016/J.JET.2010.11.003zbMath1246.91020OpenAlexW2158816285MaRDI QIDQ548263

Albert Marcet, Klaus Adam

Publication date: 28 June 2011

Published in: Journal of Economic Theory (Search for Journal in Brave)

Full work available at URL: http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.233.4615

zbMATH Keywords

learningconsumption based asset pricinginternal rationality

Mathematics Subject Classification ID

Decision theory (91B06) Financial applications of other theories (91G80) Rationality and learning in game theory (91A26)

Related Items (17)

Heterogeneity and learning with complete markets ⋮ Learning from experience in the stock market ⋮ Asset holdings, information aggregation in secondary markets and credit cycles ⋮ Asset trading under non-classical ambiguity and heterogeneous beliefs ⋮ Booms, busts and behavioural heterogeneity in stock prices ⋮ Imperfect knowledge, liquidity and bubbles ⋮ Learning and the dynamics of consumer unsecured debt and bankruptcies ⋮ Optimal fiscal policy under learning ⋮ Decentralizability of efficient allocations with heterogeneous forecasts ⋮ Behavioral learning equilibria ⋮ Stock prices and the risk-free rate: an internal rationality approach ⋮ Adaptive expectations and commodity risk premiums ⋮ A rational inattention unemployment trap ⋮ Trend growth and learning about monetary policy rules ⋮ Introduction to incompleteness and uncertainty in economics ⋮ Heterogeneous beliefs, monetary policy, and stock price volatility ⋮ The RPEs of RBCs and other DSGEs

Cites Work

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• Self-Confirming Equilibrium
• Learning, Structural Instability, and Present Value Calculations
• LEARNING TO FORECAST AND CYCLICAL BEHAVIOR OF OUTPUT AND INFLATION
• Excess Volatility and Predictability of Stock Prices in Autoregressive Dividend Models with Learning
• A note on some limitations of CRRA utility

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