This paper studies the evolution of beliefs of a group of Bayesian updaters who are connected through a social network that enables them to listen to the opinions of others. Each agent observes a sequence of private signals about the value of an unknown parameter. In addition, the agent receives...

This paper investigates empirically the relationship between inflation, inflation volatility and output growth in the case of México using monthly data over the period 1993-2011. Specifically a bivariate GARCH-M model is estimated to test the hypotheses that inflation rates are directly related...

This paper investigates empirically the relationship between inflation, inflation volatility and output growth in the case of México using monthly data over the period 1993-2011. Specifically a bivariate GARCH-M model is estimated to test the hypotheses that inflation rates are directly related...

This paper develops a model of evolution of beliefs through communication in an exogenous social network. We assume that the agents are Bayesian updaters and that the network enables them to listen to the opinion of others about some uncertain parameter of interest. We explore the effects of the...

This paper studies the evolution of beliefs of a group of Bayesian updaters who are connected through a social network that enables them to listen to the opinions of others. Each agent observes a sequence of private signals about the value of an unknown parameter. In addition, the agent receives...

This paper develops a model of costly information acquisition by agents who are connected through a network. For a exogenously given network, each agent decides first on information acquisition from his neighbors and then, after processing the information acquired, takes an action. Each agent is...