The Economics of Adjustment

Andrew Caplin and John Leahy

No 4687, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In this paper we argue that many topics in macroeconomics can be viewed as part of the broader theory of the economics of adjustment. We argue that existing approaches to the economics of adjustment take a very narrow view of the role of information. We outline an approach to this topic that stresses the role of learning and information externalities, and discussed through examples how these concerns alter the qualitative nature of the adjustment process. In particular, there appears to be a general bias towards the underprovision of information in a variety of settings which leads to inefficient adjustment.

Date: 1994-03
Note: EFG
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published as in Rod Cross, ed., "The National Rate of Unemployment", Cambridge University Press, 1995

Downloads: (external link)
http://www.nber.org/papers/w4687.pdf (application/pdf)

Related works:
Working Paper: The Economic of Adjustment (1993)
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:nbr:nberwo:4687

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w4687

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().