Haku
Viitteet 1-3 / 3
Walk on the Wild Side : Temporarily Unstable Paths and Multiplicative Sunspots
(15.05.2019)
American Economic Review 5 ; May
American Economic Review 5 ; May
We propose a generalization of the rational expectations framework to allow for temporarily unstable paths. Our approach introduces multiplicative sunspot shocks and it yields drifting parameters and stochastic volatility. ...
Fiscal Policy Multipliers in an RBC Model with Learning
(15.01.2019)
Macroeconomic Dynamics 1
Macroeconomic Dynamics 1
Using the standard real business cycle model with lump-sum taxes, we analyze the impact of fiscal policy when agents form expectations using adaptive learning rather than rational expectations (RE). The output multipliers ...
Cognitive Abilities and Inflation Expectations
(04.01.2019)
AEA Papers and Proceedings May
AEA Papers and Proceedings May
Cognitive abilities help explain the large cross-sectional variation in inflation expectations at the household level. But which type of cognitive abilities are important? We find that not only quantitative abilities but ...