learning model with the theory of rational inattention introduced by Sims (2006). In the model firms optimally allocate …

considerations moves behavior toward traditional economic rationality in UG, PD, and DG. Despite entering the study with higher …

This paper deals with one of the main empirical problems associated with the rational addiction theory, namely that its …

In this paper we question the hypothesis of full rationality in the context of job changing behaviour, via simple … forces of job change are future real wages and expected job quality. Bounded rationality suggests that individuals will … and between cells. Under full rationality the following are to be expected: high inter-cell mobility, large dispersion …

taxes under a balanced-budget rule in the presence of consumption externalities of the "keeping up with the Joneses" type … eliminating belief-driven cyclical fluctuations. Moreover, for higher values of consumption externalities, saddle path stability …