Professional forecasters generally better predict inflation than household surveys and often outperform naïve year-ahead forecasts based on the Fed's 2 percent target. Constants, the basis of the naïve forecasts, benefit because they are not subject to month-to-month volatility

This paper argues that constraining people to choose consumption and labor under finite Shannon capacity produces results in line with U.S. business cycle data as well as secular movements in consumption and labor supply. The model has simple partial equilibrium setting in which risk averse...

This paper argues that constraining people to choose consumption and labor under finite Shannon capacity produces results in line with U.S. business cycle data. My model has a simple partial equilibrium setting in which risk averse consumers keep high labor supply and low consumption profile at...

This paper studies the implications of information-processing limits on the consumption and savings behavior of households through time. It presents a dynamic model in which consumers rationally choose the size and scope of the information they want to process about their financial...

I study the problem of communication between a fully informed central bank and N rationally inattentive private agents. The central bank observes a sequence of shocks that affect each agent and sends a public signal to guide their behavioral responses. I characterize the solution to the central...

This paper studies the implications of information-processing limits on the consumption and savings behavior of households through time. It presents a dynamic model in which consumers rationally choose the size and scope of the information they want to process about their fi�nancial...

This paper argues that constraining people to choose consumption and labor under fi�nite Shannon capacity produces results in line with U.S. business cycle data as well as secular movements in consumption and labor supply. The model has a simple partial equilibrium setting in which risk averse...

We present a model where rationally inattentive agents decide how much to save while imperfectly tracking interest rate changes. Suitable assumptions on agents’ preferences and interest rate distribution allow us to derive testable theoretical predictions and their implications for monetary...

Purpose – The purpose of this paper is to describe the problem of achieving “organizational justice” for children within integrated children's services. Justice is understood, following Byers and Rhodes discussion of Levinas as respecting the “unique and indivisible” character of a...