The Macroeconomic Effects of Infrequent Information With Adjustment Costs

Marco Bonomo and René Garcia

Cahiers de recherche from Centre interuniversitaire de recherche en économie quantitative, CIREQ

Abstract: In the last decade, the potential macroeconomic effects of intermittent large adjustments in microeconomic variables such as prices, investment, consumption of durables or employment- a behaviour which may be justified by the presence of kinked adjustment costs- have been studied in models where economic agents continuously observe the optimal level of their decision variable. In this paper, we develop a simple model which introduces infrequent information in a kinked adjustment cost model by assuming that agents do not observe continuously the frictionless optimal level of the control variables.

Keywords: INFORMATION (search for similar items in EconPapers)
JEL-codes: D80 (search for similar items in EconPapers)
Pages: 28 pages
Date: 1997
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Related works:
Journal Article: The macroeconomic effects of infrequent information with adjustment costs (2001)
Journal Article: The macroeconomic effects of infrequent information with adjustment costs (2001)
Working Paper: The macroeconomic effects of infrequent information with adjustment costs (2000)
Working Paper: The Macroeconomic Effects of Infrequent Information with Adjustment Costs (1997)
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Persistent link: https://EconPapers.repec.org/RePEc:mtl:montec:9716

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