Preprint A33/2001
A note on learning chaotic sunspot equilibrium

Wilfredo Maldonado | Araujo, Aloisio

**Keywords: **
Sunspot equilibrium | learning | chaos.

In this paper we prove convergence to chaotic sunspot equilibrium through two learning rules used in the bounded rationality literature. The first one shows the convergence
of the actual dynamics generated by simple adaptive
learning rules to a probability distribution that is close
to the stationary measure of the sunspot equilibrium; since
this stationary measure is absolutely continuous it results
in a robust convergence to the stochastic equilibrium.
The second one is based on the E-stability criterion for
testing stability of rational expectations equilibrium, we
show that the conditional probability distribution defined
by the sunspot equilibrium is expectational stable under a
reasonable updating rule of this parameter. We also report
some numerical simulations of the processes proposed.