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Journal of Evolutionary Economics

, Volume 6, Issue 4, pp 361–373 | Cite as

Learning of cycles and sunspot equilibria by Genetic Algorithms

  • Herbert Dawid
Article

Abstract

We analyze the learning behaviour of a Simple Genetic Algorithm in an overlapping generations model with one consumption good and fiat money. It is shown by simulations, that in cases where periodic equilibria exist the equilibrium of period two is learned by a Genetic Algorithm and not the monetary steady state. We further show that proper coding leads to convergence of the GA towards the sunspot equilibrium. If individuals who believe in the impact of sunspots are brought together with individuals who ignore the sunspots, the sunspot believes will in most cases drive the other individuals out of the population.

Key words

Overlapping Generations Model Cycles Sunspots Genetic Algorithms 

JEL-classification

C63 D83 

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Copyright information

© Springer-Verlag 1996

Authors and Affiliations

  • Herbert Dawid
    • 1
  1. 1.Institute of Management ScienceUniversity of ViennaViennaAustria

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