Macroeconomic dynamics under bounded rationality: On the impact of consumers' forecast heuristics

Arbeitspapier

In this study, we analyze the macroeconomic dynamics under various shocks in two competing frameworks. Given the baseline New-Keynesian model, we compare the impulse response functions that stem from the hybrid version under rational expectations with the ones obtained in the forward-looking version under bounded rationality. For the latter, we assume heterogeneous agents who may adopt various forecast heuristics. We seek to understand which framework mimics real-world adjustments well and is therefore most suitable to describe economic adjustments over the business cycle.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Economics Working Paper ; No. 2018-10

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Forecasting Models; Simulation Methods ; Search; Learning; Information and Knowledge; Communication; Belief; Unawareness ; General Aggregative Models: Keynes; Keynesian; Post-Keynesian ; Macroeconomics: Consumption; Saving; Wealth ; Business Fluctuations; Cycles
• Thema: Bounded Rationality ; Consumer Expectations ; Forecast Heuristics ; Impulse Response Functions ; New-Keynesian Model

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Jang, Tae-Seok ; Sacht, Stephen
• Ereignis: Veröffentlichung
• (wer): Kiel University, Department of Economics
• (wo): Kiel
• (wann): 2018

Weitere Informationen

• Handle: http://hdl.handle.net/10419/190329
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ