This paper studies the consumption decisions of agents who face costs of acquiring, absorbing and processing … consumption plans. In between updating dates, they remain inattentive. This behavior implies that news disperses slowly throughout … the population, so events have a gradual and delayed effect on aggregate consumption. The model predicts thataggregate …

Productive consumption enables the satisfaction of current needs and simultaneously increases the productive potential … of labour. From the perspective of growth theory, the productive-consumption hypothesis is of fundamental interest … because it modifies the harsh intertemporal consumption trade-off traditionally assumed. Two fundamental possibilities for …

This paper presents a laboratory experiment that directly tests the theoretical predictions of consumption choices … under rational inattention. Subjects are asked to select consumption when income is random. They can optimally decide to … reduce uncertainty about income by acquiring signals about it. The informativeness of the signals directly relates to the …