Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/38825 
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dc.contributor.authorLines, Marjien
dc.contributor.authorWesterhoff, Franken
dc.date.accessioned2009-12-14-
dc.date.accessioned2010-08-17T12:42:16Z-
dc.date.available2010-08-17T12:42:16Z-
dc.date.issued2009-
dc.identifier.isbn978-3-931052-76-8en
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
dc.language.isoengen
dc.publisher|aBamberg University, Bamberg Economic Research Group on Government and Growth (BERG) |cBambergen
dc.relation.ispartofseries|aBERG Working Paper Series on Government and Growth |x68en
dc.subject.jelC62en
dc.subject.jelC63en
dc.subject.jelE31en
dc.subject.jelE32en
dc.subject.ddc330en
dc.subject.keywordExtrapolative and regressive expectationsen
dc.subject.keyworddynamic predictor selectionen
dc.subject.keywordmacroeconomic dynamicsen
dc.subject.keywordnonlinearities and chaosen
dc.subject.keywordbifurcation analysisen
dc.subject.stwInflationserwartungen
dc.subject.stwGeldtheorieen
dc.subject.stwMakroökonomiken
dc.subject.stwDynamisches Modellen
dc.subject.stwChaostheorieen
dc.subject.stwTheorieen
dc.titleEffects of inflation expectations on macroeconomic dynamics: Extrapolative versus regressive expectations-
dc.type|aWorking Paperen
dc.identifier.ppn61492278Xen
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:bamber:68en

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