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## Endogenous Fluctuations in the Demand for Education

Citations: | 8 - 2 self |

### Citations

1991 |
Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education (Third ed
- Becker
- 1993
(Show Context)
Citation Context ...dictions In the literature on demand for education two types of expectation formation processes are typically considered. Usually, human capital models assume rational expectations (see, for example, =-=Becker 1975-=-). Rational expectations imply that agents know how the economy works. Since the model is completely deterministic, rational expectations coincide with perfect foresight. Therefore, 9agents can perfe... |

368 | Heterogeneous beliefs and routes to chaos in a simple asset pricing model
- Brock, Hommes
- 1998
(Show Context)
Citation Context ...ng strategies or behavioral rules, and the choice of one over the other based on past performance, has also been shown to generate complicated dynamics in models of financial markets (see for example =-=Brock and Hommes 1998-=-, Lux 1998, Chiarella 1992) and Cournot competition (Droste, Hommes and Tuinstra 2002). That the inclusion of heterogenous beliefs in models on market activity can reveal interesting results in terms ... |

294 |
A rational route to randomness
- BROCK, HOMMES
- 1997
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Citation Context ...δ , giving ( x x− 1 1+δ t+1 Now that we have determined aggregate regret, all that remains is to specify the function H (.). In this paper we will make use of the so-called discrete choice model (see =-=Brock and Hommes 1997-=-), which gives nt+1 = 2+δ 1+δ t+1 1 1 + exp [−β (R (xt+1, xt) − Cr)] . Other choices for H (.) give the same qualitative behavior of the dynamics. − x 2+δ 1+δ t 3.2.3 The full model: theoretical and n... |

173 |
The Overeducated American
- Freeman
- 1976
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Citation Context ...estment into schooling. There is time series evidence, usually on the basis of dynamic regression models, that finds enrollment rates driven by backward looking expectations (Freeman 1975a and 1975b, =-=Freeman 1976-=-a, Borghans et al. 1996, Duchesne and Nonneman 1998, Quinn and Price 1998, Card and Lemieux 2000). On the other hand, one may employ rational expectations. This assumes that agents make unbiased forec... |

155 | Genetic Algorithm Learning and the Cobweb Model - Arifovic - 1994 |

129 | Adolescent econometricians: How do youth infer the returns to schooling - Manski - 1991 |

93 |
Factor Proportions and Relative Wages: The Supply-Side Determinants of Wage Inequality, in
- Topel
- 1997
(Show Context)
Citation Context ...cel out the dynamics (Dellas and Sakellaris 1995). Time series for Sweden indicate a variation of college enrollment rates of 20 to 24 year old men between 34% and 46% in the years from 1963 to 1991 (=-=Topel 1997-=-). For engineering degrees at universities, Germany was confronted with enrollment rates between 8% and 12% of all graduates from upper secondary schooling from 1975 to 1998. For those students enroll... |

84 | What do students know about wages? Evidence from a survey of undergraduates’, The
- Betts
- 1996
(Show Context)
Citation Context ...ons occur. The notion of ‘not-so-rational’ agents in our model relates to survey evidence for European and U.S. college students on motives for studying (Brunello, Lucifora and Winter-Ebmer 2001, and =-=Betts 1996-=-, respectively). The former find, based on survey data of more than 6000 college students, that the average expected college wage gains are larger than estimated actual wage gains. In their study over... |

63 | Dropout and Enrollment Trends in the Postwar Period: What Went Wrong in the 1970s? in Risky Behavior among Youths: An Economic Analysis - Card, Lemieux |

56 |
Demand for Education
- Freeman
- 1986
(Show Context)
Citation Context ... rational expectations coincide with perfect foresight. Therefore, 9agents can perfectly forecast the wages, i.e. w e t+1 = wt+1. On the other hand, many contributions employ naive expectations (see =-=Freeman 1986-=-) where it is assumed that agents predict wages using the most recent wage observation, i.e. w e t+1 = wt. In this section, we try to merge these two approaches, by allowing agents to choose between t... |

50 |
The dynamics of speculative behaviour
- Chiarella
- 1992
(Show Context)
Citation Context ..., and the choice of one over the other based on past performance, has also been shown to generate complicated dynamics in models of financial markets (see for example Brock and Hommes 1998, Lux 1998, =-=Chiarella 1992-=-) and Cournot competition (Droste, Hommes and Tuinstra 2002). That the inclusion of heterogenous beliefs in models on market activity can reveal interesting results in terms of the dynamical propertie... |

35 |
A Cobweb Model of the Supply and Starting Salary of New Engineers
- Freeman
- 1976
(Show Context)
Citation Context ...estment into schooling. There is time series evidence, usually on the basis of dynamic regression models, that finds enrollment rates driven by backward looking expectations (Freeman 1975a and 1975b, =-=Freeman 1976-=-a, Borghans et al. 1996, Duchesne and Nonneman 1998, Quinn and Price 1998, Card and Lemieux 2000). On the other hand, one may employ rational expectations. This assumes that agents make unbiased forec... |

33 |
Elements of Applied Bifurcation Theory, 2nd ed
- Kuznetsov
- 1998
(Show Context)
Citation Context ...ynamics. At the critical value (βCr) ∗ , as given in the proposition, a period-doubling or flip bifurcation occurs and a period two cycle emerges (for textbook treatments of the flip bifurcation, see =-=Kuznetsov 1998-=-, or Guckenheimer and Holmes 1983). This flip bifurcation may be supercritical or subcritical. For a supercritical flip bifurcation the period two cycle is stable and coexists with an unstable steady ... |

33 | Occupational choice under uncertainty - Siow - 1984 |

27 |
Legal 'Cobwebs': A recursive Model of the Market for New Lawyers." The Review of Economics and Statistics 57.2 (1975): 171-179 -----. "A Cobweb Model of the Supply and Starting salary of New Engineers
- Freeman
- 1976
(Show Context)
Citation Context ...uld be earned without investment into schooling. There is time series evidence, usually on the basis of dynamic regression models, that finds enrollment rates driven by backward looking expectations (=-=Freeman 1975-=-a and 1975b, Freeman 1976a, Borghans et al. 1996, Duchesne and Nonneman 1998, Quinn and Price 1998, Card and Lemieux 2000). On the other hand, one may employ rational expectations. This assumes that a... |

24 | The Wage Expectations of European College Students." Retrieved 20 - Brunello, Lucifora - 2001 |

22 | Endogenous fluctuations under evolutionary pressure in Cournot competition - Droste, Hommes, et al. - 2002 |

20 |
Supply and salary adjustments to the changing science manpower market
- Freeman
- 1975
(Show Context)
Citation Context ...uld be earned without investment into schooling. There is time series evidence, usually on the basis of dynamic regression models, that finds enrollment rates driven by backward looking expectations (=-=Freeman 1975-=-a and 1975b, Freeman 1976a, Borghans et al. 1996, Duchesne and Nonneman 1998, Quinn and Price 1998, Card and Lemieux 2000). On the other hand, one may employ rational expectations. This assumes that a... |

13 | Growth Dynamics and Education Spending: The Role of Inherited Tastes and Abilities - Croix, D - 2001 |

13 | Macrodynamic Implications of Income-Transfer Policies for Human Capital Investment and School Effort
- Orazem, Tesfatsion
- 1997
(Show Context)
Citation Context ...s that have the same private costs of effort ei. An agent born in period t + 1 learns his effort level ei, as well as the individual regret R (ei, wt+1) from his “parents” (compare with, for example, =-=Orazem and Tesfatsion 1997-=-). Now consider the case where agents can choose between the perfect foresight forecast and the naive forecast. The newborn agent uses the parents’ individual regret as an estimate of his own individu... |

12 | Coevolution and Stable Adjustments in the Cobweb Model - Franke - 1998 |

10 | On economic applications of the Genetic Algorithm: a model of the cobweb type - Dawid, Kopel - 1998 |

9 | Labor market information and the choice of vocational specialization - Borghans, Grip, et al. - 1996 |

9 |
The demand for medical education: An augmented human capital approach
- Quinn, Price
- 1998
(Show Context)
Citation Context ... the basis of dynamic regression models, that finds enrollment rates driven by backward looking expectations (Freeman 1975a and 1975b, Freeman 1976a, Borghans et al. 1996, Duchesne and Nonneman 1998, =-=Quinn and Price 1998-=-, Card and Lemieux 2000). On the other hand, one may employ rational expectations. This assumes that agents make unbiased forecasts on future relative wages. Zarkin (1983, 1985) and Siow (1984) have e... |

7 | Heterogeneous Beliefs and Learning in Forward-LookingModels - Barucci - 1999 |

6 |
The Socio-Economic Dynamics of Speculative Markets
- Lux
- 1998
(Show Context)
Citation Context ...oral rules, and the choice of one over the other based on past performance, has also been shown to generate complicated dynamics in models of financial markets (see for example Brock and Hommes 1998, =-=Lux 1998-=-, Chiarella 1992) and Cournot competition (Droste, Hommes and Tuinstra 2002). That the inclusion of heterogenous beliefs in models on market activity can reveal interesting results in terms of the dyn... |

4 | Bifurcation routes to volatility clustering - Gaunersdorfer, Hommes, et al. - 2001 |

3 | The evolution of human capital in an interacting agent economy - Bala, Sorger - 1997 |

3 | 2001): A spatial temporal model of human capital accumulation - Bala, Sorger |

2 |
The demand for higher education in Belgium
- Duchesne, Nonneman
- 1998
(Show Context)
Citation Context ... series evidence, usually on the basis of dynamic regression models, that finds enrollment rates driven by backward looking expectations (Freeman 1975a and 1975b, Freeman 1976a, Borghans et al. 1996, =-=Duchesne and Nonneman 1998-=-, Quinn and Price 1998, Card and Lemieux 2000). On the other hand, one may employ rational expectations. This assumes that agents make unbiased forecasts on future relative wages. Zarkin (1983, 1985) ... |

2 |
On the cyclicality of the demand for education: theory and evidence
- Dellas, Sakellaris
- 1995
(Show Context)
Citation Context ...nal fields. College enrollment rates in the U.S. fluctuated between 37% and 47% in the years from 1968 to 1988, where controlling for individual and regional effects does not cancel out the dynamics (=-=Dellas and Sakellaris 1995-=-). Time series for Sweden indicate a variation of college enrollment rates of 20 to 24 year old men between 34% and 46% in the years from 1963 to 1991 (Topel 1997). For engineering degrees at universi... |

2 | Cobweb versus rational expectations: lessons from the market for public school teachers - Zarkin - 1983 |

1 |
Interactive LOCal BIFurcation analyzer: LOCBIF, version 2
- Khibnik, Kuznetsov, et al.
- 1992
(Show Context)
Citation Context ...oubling bifurcation curves can be drawn and, as should already be apparent from Figure 2, they are closer to each other the higher the periodicity 5 These curves are computed with the LOCBIF program (=-=Khibnik et al. 1992-=-). 14w 2.75 2.5 2.25 2 1.75 1.5 1.25 10 20 30 40 50 60 beta Figure 3: Bifurcation diagram for wages, with β varied from 0 to 60, for α = 0.95, δ = 2 and Cr = 1 4 . of the cycles. Figure 3 shows a typ... |

1 | The demand for education: enrollments of engineers in - unknown authors - 2001 |

1 | unter Mitarbeit von H. Herlitz, V. Mueller-Benedict und A. Nath (1993): Datenhandbuch zur deutschen Bildungsgeschichte. Band I, Teil 2: Wachstum und Differenzierung der deutschen Universitäten 1830-1945 - Titze |