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We investigate the role of economic transparency within the framework of one of Townsend's models of "forecasting the forecasts of others". The equilibrium has the property that "higher order beliefs"; are coordinated into a finite-dimensional setup that is amenable to address monetary policy...
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Vickrey's fundamental contributions to the economic theory of incentives, which he applied to the areas of taxation, auction … theory, and pricing. His work focused on the economics of asymmetric and private information. Critics of Vickrey's full …
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This paper proposes an approximate solution of firm's optimal inattentive length in a standard macroeconomic model. The approximate solution conceptually fits a sticky-information model better, and predicts empirically more plausible inattentive length than the one proposed by Reis (2006)
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with the idea of financial crises in its models. In the stylized world of macroeconomic theory, crises are not an inherent …
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securities are derivative contracts that are contingent on state variables that influence adverse selection costs. This is … because the netting of cash flows in these derivative contracts, in effect, alters the state-by-state seniority of different …
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