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Business Cycle Dynamics under Rational Inattention

This paper studies a dynamic stochastic general equilibrium model with rational inattention. Decisionmakers have limited attention and choose the optimal allocation of their attention. We study the implications of rational inattention for business cycle dynamics. For example, we study how rational inattention affects impulse responses of prices and quantities to monetary policy shocks, aggregate technology shocks and micro-level shocks.
Year of publication:
2008
Authors: Mackowiak, Bartosz ; Wiederholt, Mirko
Institutions: Society for Economic Dynamics - SED
Extent:
application/pdf
Series:
Type of publication: Book / Working Paper
Notes:
The text is part of a series 2008 SED Meeting Papers Number 1059
Source:
Persistent link: https://www.econbiz.de/10011080914
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