Monday, March 5, 2012

RAT EX is no worse then equilibrium path

Look
learning is like tatonement
like groping by market agents in an exchange system

Out of equilibrium which is always
Rationality by agents is bounded by each agents
decision interval
choice of best model
And data base

Learning leads to the decision equivalent of perfect foresight
once you remove
the ramdom shock generator surrogate
for irreducible external Uncertainty


How any of this is pernicious in the science
Escapes me

The problem comes with policy
These models that depart from empirics
Are useless ...obviously