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Sources of Entropy in Representative Agent Models

Backus, David - 2011

preferences, habits, and jumps. The metrics describe the pricing kernel's dispersion (the entropy of the title) and dynamics (time … dependence, a measure of how entropy varies over different time horizons). We show how each model generates entropy and time … approximations -- clarifies the mechanisms underlying these models. It also reveals, in some cases, tension between entropy, which …

Persistent link: https://www.econbiz.de/10012461438

Rationally Inattentive Behavior : Characterizing and Generalizing Shannon Entropy

Caplin, Andrew - 2017

We provide a full behavioral characterization of the standard Shannon model of rational inattention. The key axiom is "Invariance under Compression", which identifies this model as capturing an ideal form of attention-constrained choice. We introduce tractable generalizations that allow for many...

Persistent link: https://www.econbiz.de/10012455030

The Colonial Origins of Comparative Development : An Empirical Investigation

Acemoglu, Daron - 2000

We exploit differences in the mortality rates faced by European colonialists to estimate the effect of institutions on economic performance. Our argument is that Europeans adopted very different colonization policies in different colonies, with different associated institutions. The choice of...

Persistent link: https://www.econbiz.de/10012470979

"Rain Follows the Plow" and Dryfarming Doctrine : The Climate Information Problem and Homestead Failure in the Upper Great Plains, 1890-1925

Libecap, Gary D. - 2000

In the late 19th and early 20th centuries, the North American agricultural frontier moved for the first time into semi-arid regions where farming was vulnerable to drought. Farmers who migrated to the region had to adapt their crops, techniques, and farm sizes to better fit the environment. But...

Persistent link: https://www.econbiz.de/10012471037

Term Structures of Asset Prices and Returns

Backus, David - 2016

We explore the term structures of claims to a variety of cash flows, namely, U.S. government bonds (claims to dollars), foreign government bonds (claims to foreign currency), inflation-adjusted bonds (claims to the price index), and equity (claims to future equity indexes or dividends). The...

Persistent link: https://www.econbiz.de/10012456513

Behavioral Implications of Rational Inattention with Shannon Entropy

Caplin, Andrew - 2013

entropy cost functions that better match this feature of the data and that retain key simplifying features of the Shannon …

Persistent link: https://www.econbiz.de/10012459344

Macroeconomic implications of the beliefs and behavior of foreign exchange traders

Cheung, Yin-Wong (contributor); … - 1999 - [Elektronische Ressource]

Persistent link: https://www.econbiz.de/10001511630

Prudential supervision : what works and what doesn't

Mishkin, Frederic S. (ed.) - 2001

Persistent link: https://www.econbiz.de/10001533742

Monetary policy rules : [papers based on the National Bureau of Economic Research Conference on Research in Business Cycles, held at Stanford University, 1998]

Taylor, John B. (ed.) - 2001 - Paperback ed.

Persistent link: https://www.econbiz.de/10001535296

The impact of international trade on wages

Feenstra, Robert C. (ed.) - 2000

Since the early 1980s, the U.S. economy has experienced a growing wage differential: high-skilled workers have claimed an increasing share of available income, while low-skilled workers have seen an absolute decline in real wages. How and why this disparity has arisen is a matter of ongoing...

Persistent link: https://www.econbiz.de/10001433753