is unobserved, and he optimally learns from observations of the economy. This is a classic problem of learning and … of modern policy-relevant models. As in most Bayesian learning problems, the optimal policy typically includes an … approximation to the BOP. We provide some simple examples to illustrate the role of learning and experimentation in an MJLQ …

different learning mechanisms within the investor population, we characterize the optimal timing of obfuscation for financial … participation in the market. We show that educational initiatives that are directed to facilitate learning by investors may induce …

probability of disaster leads to a collapse of investment and a recession, an increase in risk spreads, and a decrease in the … of business cycle dynamics, especially sharp downturns in investment and output such as 2008-IV …

In this paper we study "investment tournaments," a class of decision problems that involve gradual allocation of … investment among several alternatives whose values are subject to exogenous shocks. The decision-maker's payoff is determined by … choice problem, since a person choosing a career often starts by investing in learning several professions. We show that in a …

We develop an integrated theory of investment, seasoned equity offerings (SEOs), liquidation, and corporate savings … payout policies. Facing costly external financing, the firm prefers to fund its investment internally, so that its optimal … substantial delay in investment; (4) A financially constrained firm over-invests in early stages of its life-cycle in an effort to …

Existing models of structural change typically assume that all of investment is produced in manufacturing. This … assumption is strongly counterfactual: in the postwar US, the share of services value added in investment expenditure has been … investment and consumption. Our unified approach leads to three new insights: technological change is endogenously investment …

social learning in which the consumption decisions of individuals depend on information they receive from their peers. The … pieces of evidence are consistent with social learning. First, sales of movies with positive surprise and negative surprise …, social learning appears to be an important determinant of sales in the movie industry, accounting for 38% of sales for the …

This paper provides an investigation of the role of momentum and social learning in sequential voting systems. In the …, demonstrating a significant departure from the ideal of quot;one person, one vote.quot; We then address several alternative, non-learning …