This paper explores a macroeconomic model of the business cycle in which stickiness of information is pervasive. We … start from a familiar benchmark classical model and add to it the assumption that there is sticky information on the part of … stickiness is required to fit the facts. We conclude that models based on stickiness of information offer the promise of fitting …

We study the propagation of nominal shocks in a dispersed information economy where firms learn from and respond to … information generated by their activities in product and factor markets. We prove the existence of a "Hayekian benchmark", defined … by conditions under which imperfect information has no effect on equilibrium outcomes. This occurs under fairly general …

where agents strategically acquire information about factor productivity under time and effort constraints. Conditional on …