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Discrimination is a pervasive aspect of modern society and human relations. Statistical discrimination theory suggests …, whereas statistical discrimination theory implies that better predictions can be achieved by using all available information … suggesting that statistical discrimination often results in worse predictions. By understanding when statistical discrimination …
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Previous proposals suggesting monetary policy makers target private-sector forecasts have been shown to be problematic. As policy becomes more effective, private-sector forecasts become less informative. Under perfect stabilization private-sector forecasts provide no useful guidance to monetary...
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