Heterogeneous Expectations and Business Cycle Fluctuations
I develop methods for solving dynamic economic models with heterogeneous information, with applications to business cycle fluctuations (price-setting) and asset pricing. The analysis requires only a minimal set of assumptions on the information structure, and provides analytical or quantitative solutions for a wide range of DSGE Economies in which heterogeneous information gives rise to an infinite regress problem that results from "Forecasting the Forecasts of Others" (Townsend 1983).