**[1]** [[Pearlman and Sargent, 2005](https://python-advanced.quantecon.org/zreferences.html#id22)] verified this assertion using a different tactic, namely, by constructing\n",
"analytic formulas for an equilibrium under the incomplete\n",
"information structure and confirming that they match the pooling equilibrium formulas derived here.\n",
"\n",
"

**[2]** See [[Sargent, 1987](https://python-advanced.quantecon.org/zreferences.html#id197)], especially\n",
"chapters IX and XIV, for principles that guide solving some roots backwards and others forwards.\n",
"\n",
"

**[3]** As noted by [[Sargent, 1987](https://python-advanced.quantecon.org/zreferences.html#id197)], this difference equation is the Euler equation for\n",
"a planning problem that maximizes the discounted sum of consumer plus\n",
"producer surplus.\n",
"\n",
"

**[4]** [[Pearlman and Sargent, 2005](https://python-advanced.quantecon.org/zreferences.html#id22)] verify the same claim by applying machinery of [[Pearlman *et al.*, 1986](https://python-advanced.quantecon.org/zreferences.html#id23)].\n",
"\n",
"

**[5]** See [[Anderson *et al.*, 1996](https://python-advanced.quantecon.org/zreferences.html#id135)] for an account of invariant subspace methods.\n",
"\n",
"

**[6]** See [[Allen *et al.*, 2002](https://python-advanced.quantecon.org/zreferences.html#id28)] for a discussion\n",
"of information assumptions needed to create a situation\n",
"in which higher order beliefs appear in equilibrium decision rules. A way\n",
"to read our findings in light of [[Allen *et al.*, 2002](https://python-advanced.quantecon.org/zreferences.html#id28)] is that, relative\n",
"to the number of signals agents observe, Townsend’s\n",
"section 8 model has too few random shocks to get higher order beliefs to\n",
"play a role."
]
}
],
"metadata": {
"date": 1714698771.224474,
"filename": "knowing_forecasts_of_others.md",
"kernelspec": {
"display_name": "Python",
"language": "python3",
"name": "python3"
},
"title": "Knowing the Forecasts of Others"
},
"nbformat": 4,
"nbformat_minor": 5
}