Maćkowiak, Bartosz; Wiederholt, Mirko - 2023
news about future productivity. By contrast, the baseline RBC model produces neither persistent growth rates nor business …We solve a real business cycle model with rational inattention (an RI-RBC model). In the RI-RBC model, the growth rates … of employment, investment, and output are about as persistent as in the data, with an amount of inattention consistent …