Behavioural New Keynesian models

Robert Calvert Jump and Paul Levine ()

Journal of Macroeconomics, 2019, vol. 59, issue C, 59-77

Abstract: This paper provides a bird’s eye view of the behavioural New Keynesian literature. We discuss three key empirical regularities in macroeconomic data which are not accounted for by the standard New Keynesian model, namely, excess kurtosis, stochastic volatility, and departures from rational expectations. We then present a simple behavioural New Keynesian model that accounts for these empirical regularities in a straightforward manner. We discuss elaborations and extensions of the basic model, and suggest areas for future research.

Keywords: Behavioural macroeconomics; Heterogeneous expectations; Bounded rationality (search for similar items in EconPapers)
JEL-codes: E30 E32 E70 E71 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S016407041830243X
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Behavioural New Keynesian Models (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jmacro:v:59:y:2019:i:c:p:59-77

DOI: 10.1016/j.jmacro.2018.11.002

Access Statistics for this article

Journal of Macroeconomics is currently edited by Douglas McMillin and Theodore Palivos

More articles in Journal of Macroeconomics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().