Showing 1 - 10 of 10
the welfare of the agents, it also decreases the informational content of their actions, hampering the agency's learning …
Persistent link: https://www.econbiz.de/10009654300
I show how cyclical aggregate shocks can stimulate structural reallocation activities, which in turn amplify the effect of the shock. I emphasize the informational aspects related to restructuring activities and their potential interplay with aggregate shocks. Building on work by Caplin and...
Persistent link: https://www.econbiz.de/10005486715
economy where (i) private agents have incomplete information and form their expectations using recursive learning algorithms … of stability of the equilibrium and speed of convergence of the learning process. In particular, while the publication of … stabilize expectations and to speed up the learning process the response of the policy instrument to inflation should be …
Persistent link: https://www.econbiz.de/10008764925
form their beliefs using adaptive learning algorithms that may differ from one individual to another. We show that market …
Persistent link: https://www.econbiz.de/10009020149
We derive the optimal fiscal policy for a government that is committed to honoring its debt but faces investors which fear a sovereign default. We assume that investors are able to learn from new evidence, as in Marcet and Sargent (1989), so that they can gradually correct their overly...
Persistent link: https://www.econbiz.de/10011099622
considers many different aspects of the agglomeration - labor market relationship, including turnover, learning, matching, and … agglomeration and uncertainty. There is also evidence of on-the-job learning that is consistent with theories of labor pooling …
Persistent link: https://www.econbiz.de/10011099663
We analyse a simplified New-Keynesian model with an unobserved aggregate cost-push shock in which firms and the central bank have different information about the shock. We consider a linear policy rule where a pure inflation targeting central bank decides how much to react to the shock given its...
Persistent link: https://www.econbiz.de/10011099675
Using French firm-level trade data, we provide empirical support for a heterogeneous firm model in which exporting requires finding a local partner in each market: contracts are incomplete, exporters must learn the reliability of their partners through experience, and export behaviour is...
Persistent link: https://www.econbiz.de/10011099716
expectations, have incomplete information about the working of the economy and form expectations through an adaptive learning … expectations and of learning. The main findings are the followings: (i) under learning, price dynamics in 2015-16 is on average 0 … repeated deflationary shocks; (ii) the learning process implies a (data-driven) de-anchoring of inflation expectations from the …
Persistent link: https://www.econbiz.de/10011103306
Sargent (1999) warns that if policymakers� views on the unemployment - inflation tradeoff are driven by empirical correlations rather than theory, disinflations (escapes from high to low inflation) may periodically occurr but are not bound to last. This paper asks how different inflation...
Persistent link: https://www.econbiz.de/10005113596