Do Noisy Data Exacerbate Cyclical Volatility?

How does the additional uncertainty associated with noisy economic data affect business cycle fluctuations? I use a simple variant of the neoclassical growth model to show that the answer depends crucially on the assumed expectation-formation capabilities of agents. Under efficient signal extracting, noisy economic indicators dampen cyclical volatility. The opposite occurs when agents follow a simple bounded rational strategy

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Year of publication:	2000
Authors:	Bomfim, Antulio N.
Publisher:	[S.l.] : SSRN
Subject:	Volatilität \| Volatility \| Konjunktur \| Business cycle \| Begrenzte Rationalität \| Bounded rationality \| Dynamisches Gleichgewicht \| Dynamic equilibrium \| Wachstumstheorie \| Growth theory

Extent:	1 Online-Ressource (12 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 28, 1999 erstellt
Other identifiers:	10.2139/ssrn.190853 [DOI]
Classification:	E32 - Business Fluctuations; Cycles ; D84 - Expectations; Speculations ; C61 - Optimization Techniques; Programming Models; Dynamic Analysis
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10014178844