Estimation and inference in models with multiple behavioural equilibria

Fuente: arXiv
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Auteurs principaux: Mayer, Alexander, Raggi, Davide
Format: Preprint
Publié: 2025
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author Mayer, Alexander
Raggi, Davide
author_facet Mayer, Alexander
Raggi, Davide
contents We develop estimation and inference methods for a stylized macroeconomic model with potentially multiple behavioural equilibria, where agents form expectations using a constant-gain learning rule. We first show geometric ergodicity of the underlying process to study in a second step (strong) consistency and asymptotic normality of the nonlinear least squares estimator for the structural parameters. We propose inference procedures for the structural parameters and uniform confidence bands for the equilibria. When equilibrium solutions are repeated, mixed convergence rates and non-standard limit distributions emerge. Monte Carlo simulations and an empirical application illustrate the finite-sample performance of our methods.
format Preprint
id arxiv_https___arxiv_org_abs_2512_04541
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Estimation and inference in models with multiple behavioural equilibria
Mayer, Alexander
Raggi, Davide
Econometrics
We develop estimation and inference methods for a stylized macroeconomic model with potentially multiple behavioural equilibria, where agents form expectations using a constant-gain learning rule. We first show geometric ergodicity of the underlying process to study in a second step (strong) consistency and asymptotic normality of the nonlinear least squares estimator for the structural parameters. We propose inference procedures for the structural parameters and uniform confidence bands for the equilibria. When equilibrium solutions are repeated, mixed convergence rates and non-standard limit distributions emerge. Monte Carlo simulations and an empirical application illustrate the finite-sample performance of our methods.
title Estimation and inference in models with multiple behavioural equilibria
topic Econometrics
url https://arxiv.org/abs/2512.04541