of the CVAR are shown to be interpretable in terms of expectations formation, market clearing, nominal rigidities, etc …

with unemployment and bargaining frictions. Shocks to long-run inflation expectations appear to account for much of the … expectations; in fact, conditions were deflationary all throughout the 1930s in spite of high money growth and low interest rates …

This paper presents a simple experiment on how laypeople form macroeconomic expectations. Subjects have to forecast … forecasts. It turns out that the availability of historical data has a dominant impact on expectations and wipes out the …

Separately, news and sunspot shocks have been shown empirically to be determinants of changes in expectations. This … expectations solutions is derived analytically. The analytical characterization allows an explicit comparison of news about future …

technology penetration in the future – in extreme cases, expectations prevail over policy. This feature highlights the danger of …

terms of a public good quality are done by a central planner. More specifically, they ask the question whether a local …, through a comparison of social welfare given the strategies chosen by the locals governments, that whatever the quality of the …

If a product has two dimensions of quality, one observable and one not, a firm can use observable quality as a signal … of unobservable quality. The correlation between consumers' valuation of high quality in each dimension is a key … determinant of the feasibility of such signaling. A firm may use price alone as a signal, or price and quality together. Both …

worker satisfaction. Theoretically, wages of others may affect workers' utility for two main reasons: Workers may derive well …