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A key question in economic research and policymaking is to what extent one can use simplified models. This paper addresses this question by comparing the results of two learning-to-forecast laboratory experiments: one design based on the reduced form of a New-Keynesian model; and one design...
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: Overview of the Theory -- Chapter 4. Price Formation: Partial Equilibrium -- Chapter 5. Price Formation: General Equilibrium …This book establishes that neoclassical economics based on the marginal utility calculus failed to derive a theory of … rich narrative of price discovery theory consistent with experimental evidence based on operational concepts of discrete …
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