Sims, Christopher A. - In: Handbook of monetary economics : volume 3, (pp. 155-181). 2010
Rational inattention theory is economic theory that recognizes that people have finite information-processing capacity …, in the sense of Shannon and engineering information theory. This approach is still in the early stages of development … macroeconomics and finance. In this chapter we introduce the basic ideas of information theory, show how it can be introduced …
