Research projects

Project CEMAPRE internal

TitleEndogenous switching of expectations
ParticipantsAdriana Cornea-Madeira (Principal Investigator), Joao Madeira
SummaryIt is common in economic modelling to assume all agents have the same expectations (rational
expectations or adaptative expectations) or that different types of agents use different rules but
cannot change their type (an agent with adaptative expectations cannot change to become
forward-looking). We are working on several projects in which we allow agents to switch endogenously
between different expectation rules based on their previous forecast performance.