We consider fiscal policy in a non-monetary, general equilibrium framework with uncertainty, in which the financing of the government budget has no effects. We show that »crowding out» and »crowding in» depend on whether the fiscal policy requires a gestation period or whether its effect is...

In this paper we let economic agents choose whether to become fully rational or stay boundedly rational. Boundedly rational agents are less sophisticated in their information processing abilities. It is costly to acquire information needed to become fully rational, and thus not all agents are...