This paper estimates a New Keynesian model with new and old behavioral elements. Agents in the model exhibit cognitive discounting, or myopia: they discount variables far into the future at higher rates than typically implied in the benchmark model. We investigate the model under different...

This paper estimates and compares three recent Behavioral New Keynesian models: the finite horizon planning model proposed by Woodford (2018), the cognitive discounting model proposed by Gabaix (2020), and the imperfect common knowledge model proposed by Angeletos and Lian (2018). I show that...

This paper estimates a New Keynesian model with new and old behavioral elements. Agents in the model exhibit cognitive discounting, or myopia: they discount variables far into the future at higher rates than typically implied in the benchmark model. We investigate the model under different...