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Behavioral New Keynesian models : learning vs. cognitive discounting
Meggiorini, Greta; Milani, Fabio - 2021
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
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Bounded rationality and socially optimal limits on choice in a self-selection model
Sheshinski, Eytan - 2003
of heterogeneity in the population and that even with very small degrees of non-rationality it may be optimal not to …
Persistent link: https://www.econbiz.de/10011505924
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Capturing the complexity of human strategic decision-making with machine learning
Zhu, Jian-Qiao; Peterson, Joshua; Enke, Benjamin; … - 2024
Understanding how people behave in strategic settings–where they make decisions based on their expectations about the behavior of others–is a longstanding problem in the behavioral sciences. We conduct the largest study to date of strategic decision-making in the context of initial play in...
Persistent link: https://www.econbiz.de/10015051641
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Pawns and queens revisited : public provision of private goods when individuals make mistakes
Pirttilä, Jukka (contributor); Tenhunen, Sanna (contributor) - 2005
respects: income-earning ability and rationality. Publicly provided goods should be overprovided or subsidised, relative to the …
Persistent link: https://www.econbiz.de/10002855793
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Rationality, irrationality and economic cognition
Whalley, John (contributor) - 2005
This paper contrasts the modern use of the assumption that rationality guides individual economic behaviour, as … notions of rationality based on the availability of information, ability to reason (cognitive skills), and even morality …. Learning played a major role in individuals achieving what was referred to as complete rationality. I draw on these ideas, and …
Persistent link: https://www.econbiz.de/10002756346
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Social security incentives and human capital investment
Igel Lau, Morten; Poutvaara, Panu - 2001
While the effect of social security systems on retirement decisions has received much attention, the impact of these systems on individuals incentives to invest in their human capital has not been analyzed. We integrate human capital investment and retirement decisions in a simple analytical...
Persistent link: https://www.econbiz.de/10011398074
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Taxing education in Ramsey's tradition
Richter, Wolfram F. - 2009
Assuming a two-period model with endogenous choices of labour, education, and saving, it is shown to be second-best efficient to deviate from Ramsey's Rule and to distort qualified labour less than nonqualified labour. The result holds for arbitrary utility and learning functions. Efficient...
Persistent link: https://www.econbiz.de/10003818036
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Labor income taxation, human capital and growth : the role of child care
Casarico, Alessandra (contributor);  … - 2008
This paper studies the implications of introducing child care in the human capital production function when assessing the effects of labor income taxation on growth. We develop an OLG model where formal schooling and child care enter the human capital production function as complements and we...
Persistent link: https://www.econbiz.de/10003748485
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Learning from zero : how to make consumption-saving decisions in a stochastic environment with an AI algorithm
Shi, Rui - 2021 - This draft: August 16, 2021
This exercise offers an innovative learning mechanism to model economic agent's decision-making process using a deep reinforcement learning algorithm. In particular, this AI agent is born in an economic environment with no information on the underlying economic structure and its own preference....
Persistent link: https://www.econbiz.de/10012603191
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The weak rationality principle in economics
Kirchgässner, Gebhard (contributor) - 2005
The weak rationality principle is not an empirical statement but a heuristic rule of how to proceed in social sciences …-foundation and, therefore, employ the rationality assumption in economic models. Then, with reference to the ‘bounded rationality … a part of the rationality assumption. We conclude with some remarks on handling the problems of ‘free will’ as well as …
Persistent link: https://www.econbiz.de/10002730896