Showing 1 - 5 of 5
This paper investigates a real-business-cycle economy that features dispersed informationabout the underlying aggregate productivity shocks, taste shocks, and—potentially—shocks tomonopoly power. We show how the dispersion of information can (i) contribute to significantinertia in the...
Persistent link: https://www.econbiz.de/10009479999
Economics
Persistent link: https://www.econbiz.de/10009432038
How does uncertainty and credit constraints affect the cyclical composition of investment and thereby volatility and growth? This paper addresses this question within a model where firms engage in two types of investment: a short-term one; and a long-term one, which contributes more to...
Persistent link: https://www.econbiz.de/10009432719
Information regarding economic fundamentals is widely dispersed in society, is only imperfectly aggregated through prices or other indicators of aggregate activity, and cannot be centralized by the government or any other institution. In this paper we seek to identify policies that can improve...
Persistent link: https://www.econbiz.de/10009432909
This paper investigates how incomplete information impacts the response of prices to nominalshocks. Our baseline model is a variant of the Calvo model in which firms observe the underlyingnominal shocks with noise. In this model, the response of prices is pinned down by threeparameters: the...
Persistent link: https://www.econbiz.de/10009432910