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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...
Persistent link: https://www.econbiz.de/10012509319
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...
Persistent link: https://www.econbiz.de/10013229788
This paper estimates a Behavioral New Keynesian model to revisit the evidence that passive US monetary policy in the pre-1979 sample led to indeterminate equilibria and sunspot-driven fluctuations, while active policy after 1982, by satisfying the Taylor principle, was instrumental in restoring...
Persistent link: https://www.econbiz.de/10012029136
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...
Persistent link: https://www.econbiz.de/10013311298