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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