Hintermaier, Thomas; Koeniger, Winfried - In: Quantitative economics : QE ; journal of the … 9 (2018) 3, pp. 1489-1542
This paper develops a notion of consumer confidence within a dynamic competitive equilibrium framework. In any …, confidence is encoded in the subjective probabilities consumers attach to these multiple future outcomes. Our approach … faced by consumers. We use the structure of an economy with collateralized household debt and housing markets to develop and …
