Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/50363 
Full metadata record
DC FieldValueLanguage
dc.contributor.authorDräger, Lenaen
dc.date.accessioned2011-09-05-
dc.date.accessioned2011-10-06T15:40:32Z-
dc.date.available2011-10-06T15:40:32Z-
dc.date.issued2011-
dc.identifier.pidoi:10.3929/ethz-a-006543954en
dc.identifier.urihttp://hdl.handle.net/10419/50363-
dc.description.abstractThe 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
dc.language.isoengen
dc.publisher|aETH Zurich, KOF Swiss Economic Institute |cZurichen
dc.relation.ispartofseries|aKOF Working Papers |x285en
dc.subject.jelE31en
dc.subject.jelE37en
dc.subject.jelE52en
dc.subject.ddc330en
dc.subject.keywordEndogenous sticky informationen
dc.subject.keywordheterogeneous expectationsen
dc.subject.keywordDSGE modelsen
dc.subject.keywordpersistenceen
dc.titleEndogenous persistence with recursive inattentiveness-
dc.typeWorking Paperen
dc.identifier.ppn667713875en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

Files in This Item:
File
Size
980.02 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.