Business Cycle Dynamics under Rational Inattention

Bartosz Maćkowiak and Mirko Wiederholt ()

No 1059, 2008 Meeting Papers from Society for Economic Dynamics

Abstract: This paper studies a dynamic stochastic general equilibrium model with rational inattention. Decisionmakers have limited attention and choose the optimal allocation of their attention. We study the implications of rational inattention for business cycle dynamics. For example, we study how rational inattention affects impulse responses of prices and quantities to monetary policy shocks, aggregate technology shocks and micro-level shocks.

Date: 2008
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Citations: View citations in EconPapers (10)

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Related works:
Journal Article: Business Cycle Dynamics under Rational Inattention (2015)
Working Paper: Business cycle dynamics under rational inattention (2011)
Working Paper: Business Cycle Dynamics under Rational Inattention (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed008:1059

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