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Local Copy.pdf

06-InPro.pdf
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🔗 Source: personal.lse.ac.uk
📊 Size: 191 KB
📄 Pages: 29 pages
⬇️ Downloads: 98

Summary

Ricardo Reis presents a model of inattentive producers who face costs of acquiring, absorbing, and processing information, leading to sporadic updates of their information sets and plans. The model provides a micro-foundation for time-contingent adjustment, derives conditions for producers to choose price or quantity plans, and aggregates the behavior of many inattentive producers, resulting in an exponential distribution of inattentiveness. The model is applied to a model of inflation, which fits post-war inflation data well, forecasts inflation better than reduced-form models, and survives the Lucas critique by accounting for pre-war inflation data moderately well.

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Description

Ricardo Reis presents a model of inattentive producers who face costs of acquiring, absorbing, and processing information, leading to sporadic updates of their...

Technical Information

  • File Format: PDF
  • File Size: 191 KB
  • Pages: 29
  • Language: EN
  • Total Downloads: 98
  • Last Updated: 2 hours ago

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