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http://hdl.handle.net/10419/38825
  

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dc.contributor.authorLines, Marjien_US
dc.contributor.authorWesterhoff, Franken_US
dc.date.accessioned2009-12-14en_US
dc.date.accessioned2010-08-17T12:42:16Z-
dc.date.available2010-08-17T12:42:16Z-
dc.date.issued2009en_US
dc.identifier.isbn978-3-931052-76-8en_US
dc.identifier.urihttp://hdl.handle.net/10419/38825-
dc.description.abstractIn this paper we integrate heterogeneous inflation expectations into a simple monetary model. Guided by empirical evidence we assume that boundedly rational agents, selecting between extrapolative and regressive forecasting rules to predict the future inflation rate, prefer rules that have produced low prediction errors in the past. We show that integrating this behavioral expectation formation process into the monetary model leads to the possibility of endogenous macroeconomic dynamics. For instance, our model replicates certain empirical regularities such as irregular growth cycles or inflation persistence. Moreover, we observe multi-stability via a Chenciner bifurcation.en_US
dc.language.isoengen_US
dc.publisherUniv., Volkswirtschaftliche Forschungsstelle Bambergen_US
dc.relation.ispartofseriesBERG Working paper series on government and growth 68en_US
dc.subject.jelC62en_US
dc.subject.jelC63en_US
dc.subject.jelE31en_US
dc.subject.jelE32en_US
dc.subject.ddc330en_US
dc.subject.keywordExtrapolative and regressive expectationsen_US
dc.subject.keyworddynamic predictor selectionen_US
dc.subject.keywordmacroeconomic dynamicsen_US
dc.subject.keywordnonlinearities and chaosen_US
dc.subject.keywordbifurcation analysisen_US
dc.subject.stwInflationserwartungen_US
dc.subject.stwGeldtheorieen_US
dc.subject.stwMakroökonomiken_US
dc.subject.stwDynamisches Modellen_US
dc.subject.stwChaostheorieen_US
dc.subject.stwTheorieen_US
dc.titleEffects of inflation expectations on macroeconomic dynamics: Extrapolative versus regressive expectationsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn61492278Xen_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:bamber:68-
Appears in Collections:BERG Working Paper Series, Universität Bamberg

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