The macroeconomic effects of infrequent information with adjustment costs
Data(s) |
13/05/2008
23/09/2010
13/05/2008
23/09/2010
01/05/2000
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Resumo |
We extend the macroeconomic literature on Sstype rules by introducing infrequent information in a kinked ad justment cost model. We first show that optimal individual decision rules are both state-and -time dependent. We then develop an aggregation framework to study the macroeconomic implications of such optimal individual decision rules. In our model, a vast number of agents act together, and more so when uncertainty is large.The average effect of an aggregate shock is inversely related to its size and to aggregate uncertainty. These results are in contrast with those obtained with full information ad justment cost models. |
Identificador |
0104-8910 |
Idioma(s) |
en_US |
Publicador |
Escola de Pós-Graduação em Economia da FGV |
Relação |
Ensaios Econômicos;384 |
Palavras-Chave | #Aggregation #Infrequent information #Adjustment cost models #Time and state dependent rules #State dependent rules #Economia |
Tipo |
Working Paper |