Tille, Cédric; van Wincoop, Eric - In: Journal of Economic Dynamics and Control 40 (2014) C, pp. 1-24
Noisy rational expectations models, in which agents have dispersed private information and extract information from an endogenous asset price, are widely used in finance. However, these linear partial equilibrium models do not fit well in modern macroeconomics that is based on non-linear dynamic...