EconPapers    
Economics at your fingertips  
 

The two-period rational inattention model: accelerations and analyses

Kurt Lewis ()

No 2008-22, Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (US)

Abstract: This paper demonstrates the properties of and a solution method for the more general two-period Rational Inattention model of Sims (2006). It is shown that the corresponding optimization problem is convex and can be solved very quickly. This paper also demonstrates a computational tool well-suited to solving Rational Inattention models and further illustrates a critique raised in Sims (2006) regarding Rational Inattention models whose solutions assume parametric formulations rather than solve for their optimally-derived, non-parametric counterparts.

Keywords: Consumption (Economics); Econometric models (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-cmp and nep-dge
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://www.federalreserve.gov/pubs/feds/2008/200822/200822abs.html (text/html)
http://www.federalreserve.gov/pubs/feds/2008/200822/200822pap.pdf (application/pdf)

Related works:
Journal Article: The Two-Period Rational Inattention Model: Accelerations and Analyses (2009) Downloads
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:fip:fedgfe:2008-22

Ordering information: This working paper can be ordered from
http://www.federalre ... /feds/fedsorder.html

Access Statistics for this paper

More papers in Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (US) Contact information at EDIRC.
Bibliographic data for series maintained by Ryan Wolfslayer ().

 
Page updated 2019-10-16
Handle: RePEc:fip:fedgfe:2008-22