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Email this citationCIAO DATE: 6/00
Heterogeneity and Evolution of Expectations
a Model of Currency Crisis
Jasmina Arifovic and Paul Masson
April 10, 2000
Abstract
A model of a portfolio allocation between mature and emerging markets is simulated with heterogeneous expectations, imitation, and experimentation. Solutions produce periodic crises. The predictions of the model are compared to a representative-agent, rational expectations model with multiple equilibria.
