Showing 1 - 10 of 40
Persistent link: https://www.econbiz.de/10013256032
We construct a model to capture the Keynesian idea that production and employment decisions are based on expectations of aggregate demand driven by sentiments, and that realized demand follows from the production and employment decisions of firms. We cast the Keynesian idea into a simple model...
Persistent link: https://www.econbiz.de/10013078372
Persistent link: https://www.econbiz.de/10003738505
Uncertainty in both financial markets and the real economy rises sharply during recessions. We develop a model of informational interdependence between financial markets and the real economy, linking uncertainty to information production and aggregate economic activities. We argue that there...
Persistent link: https://www.econbiz.de/10012911472
We develop a general equilibrium model of informational interdependence between financial markets and the real economy, linking economic uncertainty to information production and aggregate economic activities. The mutual learning between financial markets and the real economy creates a strategic...
Persistent link: https://www.econbiz.de/10012902208
Even if an asset has no fundamental uncertainty with a constant dividend process, a stochastic sentiment-driven equilibrium for the asset price exists besides the well-known fundamental equilibrium. Our paper constructs such sentiment-driven equilibria under general utility functions within an...
Persistent link: https://www.econbiz.de/10014237591
Persistent link: https://www.econbiz.de/10015168497
Even if an asset has no fundamental uncertainty with a constant dividend process, a stochastic sentiment-driven equilibrium for the asset price exists besides the well-known unique fundamental equilibrium. Our paper constructs such sentiment-driven equilibria under general utility functions...
Persistent link: https://www.econbiz.de/10013245203
Persistent link: https://www.econbiz.de/10011914348
Persistent link: https://www.econbiz.de/10011850405