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dc.contributor.author
Dräger, Lena
dc.date.accessioned
2017-06-28T15:18:10Z
dc.date.available
2017-06-09T18:42:04Z
dc.date.available
2017-06-28T15:18:10Z
dc.date.issued
2011-07
dc.identifier.uri
http://hdl.handle.net/20.500.11850/45003
dc.identifier.doi
10.3929/ethz-a-006543954
dc.description.abstract
The DSGE model with endogenous and time-varying sticky information in Dräger (2010) is extended by allowing agents’ recursive choice between forecasts under rational or sticky information to affect the model solution. Dynamic equilibrium paths generate highly persistent series for output, inflation and the nominal interest rate. Agents choose predictors in a near-rational manner and we find that the share of agents with rational expectations reacts to the overall variability of aggregate variables. The model can generate hump-shaped responses of inflation and output to a monetary policy shock if the degree of inattentiveness is sufficiently high. Finally, feedback from agents’ degree of inattentiveness to the model solution affects the determinacy region of the model. The Taylor principle is then only a necessary condition for determinacy, and monetary policy should target the output gap as well in order to ensure a unique and stable solution.
en_US
dc.language.iso
en
en_US
dc.publisher
KOF Swiss Economic Institute, ETH Zurich
dc.rights.uri
http://rightsstatements.org/page/InC-NC/1.0/
dc.subject
DSGE models
en_US
dc.subject
MONETARY POLICY
en_US
dc.subject
Persistence
en_US
dc.subject
Endogenous sticky information
en_US
dc.subject
MAKROÖKONOMISCHE MODELLE (OPERATIONS RESEARCH)
en_US
dc.subject
INFLATION
en_US
dc.subject
GELDPOLITIK
en_US
dc.subject
MACROECONOMIC MODELS (OPERATIONS RESEARCH)
en_US
dc.subject
Heterogeneous expectations
en_US
dc.title
Endogenous persistence with recursive inattentiveness
en_US
dc.type
Working Paper
dc.rights.license
In Copyright - Non-Commercial Use Permitted
ethz.journal.title
KOF Working Papers
ethz.journal.volume
285
en_US
ethz.size
35 p.
en_US
ethz.code.ddc
3 - Social sciences::330 - Economics
en_US
ethz.notes
.
en_US
ethz.identifier.nebis
006543954
ethz.publication.place
Zürich
en_US
ethz.publication.status
published
en_US
ethz.leitzahl
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.::03716 - Sturm, Jan-Egbert / Sturm, Jan-Egbert
ethz.leitzahl
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.::02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute
ethz.leitzahl.certified
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.::02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute
ethz.leitzahl.certified
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.::03716 - Sturm, Jan-Egbert / Sturm, Jan-Egbert
ethz.date.deposited
2017-06-09T18:42:13Z
ethz.source
ECOL
ethz.source
ECIT
ethz.identifier.importid
imp59366b05335b022930
ethz.identifier.importid
imp59364ee3b962887887
ethz.ecolpid
eth:2904
ethz.ecitpid
pub:74054
ethz.eth
yes
en_US
ethz.availability
Open access
en_US
ethz.rosetta.installDate
2017-06-28T15:18:11Z
ethz.rosetta.lastUpdated
2018-11-05T13:24:29Z
ethz.rosetta.exportRequired
true
ethz.rosetta.versionExported
true
ethz.COinS
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