Luo, Yulei; Nie, Jun; Young, Eric R. - In: Journal of International Economics 88 (2012) 1, pp. 104-120
In this paper we examine the effects of two types of “induced uncertainty”, model uncertainty due to robustness (RB) and state uncertainty due to finite information–processing capacity (called rational inattention or RI), on consumption and the current account. We show that the combination...
