This paper estimates a standard Dynamic Stochastic General Equilibrium (DSGE) model that includes a wage and price Phillip's curves with different expectation formation processes for Brazil and the USA. Other than the standard rational expectation process, we also use a limited rationality...

The objective of this article is to define the financial inclusion expectation gap, offer some insight into the nature and the causes of it, and suggest ways to reduce the gap. The discussion in the article provides helpful insights into this problem towards achieving the United Nations...

We give conditions under which the smoothness properties of the value and policy functions of a dynamic program at discount factor zero extend to small positive discount factors. We apply this to a model of Bayesian learning by a decision maker who does not know which of several parameters is...

We measure which past experiences determine investors' expectations about the market's future Sharpe Ratio. We first introduce a simple method to recover individuals' subjective Sharpe Ratios from a rich source of survey microdata. These subjective expectations are procyclical, extrapolative,...