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The misspecification of expectations in New Keynesian models : a DSGE-VAR approach
Cole, Stephen J.; Milani, Fabio - 2016
This paper tests the ability of popular New Keynesian models, which are traditionally used to study monetary policy and business cycles, to match the data regarding a key channel for monetary transmission: the dynamic interactions between macroeconomic variables and their corresponding...
Persistent link: https://www.econbiz.de/10011541080
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The e-correspondence principle
Evans, George W.; Honkapohja, Seppo - 2004
We introduce the E-correspondence principle for stochastic dynamic expectations models as a tool for comparative dynamics analysis. The principle is applicable to equilibria that are stable under least squares and closely related learning rules. With this technique it is possible to study,...
Persistent link: https://www.econbiz.de/10011404292
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Tests of policy ineffectiveness in macroeconometrics
Pesaran, M. Hashem; Smith, Ron - 2014
This paper proposes tests of policy ineffectiveness in the context of macroeconometric rational expectations models. It is assumed that there is a policy intervention that takes the form of changes in the parameters of a policy rule, and that there are sufficient observations before and after...
Persistent link: https://www.econbiz.de/10010375404
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Dynamic rational inattention and the Phillips curve
Afrouzi, Hassan; Yang, Choongryul - 2021
-driven theory of dynamic pricing in which the Phillips curve slope is endogenous to systematic aspects of monetary policy. In our …
Persistent link: https://www.econbiz.de/10012417763
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Quantifying qualitative survey data : new insights on the (ir)rationality of firms' forecasts
Botsis, Alexandros; Görtz, Christoph; Sakellarēs, … - 2020
Using a novel dataset that contains qualitative firm survey data on sales forecasts as well as balance-sheet data on realized sales, we document that only major forecast errors are predictable and display autocorrelation. This result is a particular violation of the Full Information Rational...
Persistent link: https://www.econbiz.de/10012174792
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The devil you know : rational inattention to discrete choices when prior information matters
Pellegrino, Bruno - 2023
In the seminal rational inattention model of Matĕjka and McKay (2015), logit demand arises from the discrete choice of agents who are uncertain about choice payoffs and have access to a flexible, costly information acquisition technology (RI-logit). A notable limitation of this powerful...
Persistent link: https://www.econbiz.de/10014247316
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Macroeconomic modeling when agents are imperfectly informed
De Grauwe, Paul (contributor) - 2008
Persistent link: https://www.econbiz.de/10003712532
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Top-down versus bottom-up macroeconomics
De Grauwe, Paul - 2010
not devoid of rationality. Agents in these models behave rationally in that they are willing to learn from their mistakes …
Persistent link: https://www.econbiz.de/10003965858
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Have macroeconomic models lost their connection with economic reality?
Veen, Tom van - 2020
Macroeconomic theory has developed into increasingly sophisticated mathematical models. In the words of Mankiw … the development of macroeconomic theory over the past 40 years. The focus is on the main lines of thinking and the story … changes in macroeconomic theory and that the current debates after the GFC will be the start of a more plural approach to …
Persistent link: https://www.econbiz.de/10012211109
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The selection effect and the inflation-output variability trade-off
Kara, Engin - 2015
It has been shown that extending the Calvo model to account for the heterogeneity in price stickiness suggested by the micro-evidence significantly improves the performance of the model. In the new model, price-changing firms are chosen disproportionately from sectors with more flexible prices....
Persistent link: https://www.econbiz.de/10011406558