Rational Inattention
Rational inattention to subsidies for charitable contributions
... The findings of Chetty at al. (2009) and Finkelstein (2009) could also be interpreted in this light – buyers deliberately choosing not to process the information about the tax. In our case, the parallel would be with the ...
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A Rational Inattention Perspective on Equilibrium Asset Pricing under Heterogeneous Information with Structural Breaks and Market Efficiency
... The rational inattention approach has been applied to diverse macroeconomic sub-fields such as sticky prices, see Sims (2003) and Woodford (2009), differences in the price reactions due to different shocks, ...
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What We Don't Know Doesn't Hurt Us: Rational Inattention and the Permanent Income Hypothesis in General Equilibrium
... compare rational inattention with habit formation, and show that although both hypotheses lead to slow adjustment in consumption, they have opposte effects on the equilibrium interest rate and the relative ...
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Monetary Policy Activism and Price Responsiveness to Aggregate Shocks under Rational Inattention
... the rational inattention model, going from the inactive to the active mone- tary policy causes little impact on in‡ation and output-gap variability conditional on technology ...
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Rational Inattention Dynamics: Inertia and Delay in Decision-Making
... approach would be to reduce the problem to a collection of static problems using the Bell- man equation, with payoffs equal to current payoffs plus continuation values that depend on posterior beliefs. However, the ...
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Rational Inattention and the Dynamics of Consumption and Wealth in General Equilibrium
... interest rate to the dynamics of consumption and wealth. Furthermore, these RI models do not sep- arate risk aversion from intertemporal substitution in determining consumption dynamics, while many papers on recursive ...
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Discrete Choice and Rational Inattention: a General Equivalence Result
... Specifically, we introduce a class of Generalized Entropy Rational Inattention (GERI) models. 2 In GERI models, the information cost functions are constructed from a class of “generalized entropy” ...
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Optimal Sticky Prices under Rational Inattention
... under rational inattention (the line with squares) to the price reaction under perfect information (the line with points), we see that under rational inattention the price reaction to nominal ...
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Travel time variability and rational inattention
... a rational inattention model for a traveler’s choice of departure time when the travel time is ...the rational inattention model always being ...
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Real Business Cycle Dynamics under Rational Inattention
... of rational inattention at microestructure level would involve incorporating information constrained decisions to details such as bargainning, inventories, retailers, demand deposits, cash, and others ...
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The Response of Prices to Technology and Monetary Policy Shocks under Rational Inattention
... The …rst direct e¤ect goes through the reallocation of attention at the price setter level: a more aggressive monetary policy on in‡ation reduces the feedback from aggregate prices to …r[r] ...
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The Impact of Consumer Inattention on Insurer Pricing in the Medicare Part D Program
... eliminating inattention and restricting poor choices may be an unrealistically low- cost simulation, we want to highlight how this market would work if the shoppers in it were both skilled and ...
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The Impact of Consumer Inattention on Insurer Pricing in the Medicare Part D Program
... Removing inattention in the simulations makes the price-setting process static rather than dynamic, implying that the new equilibrium prices can be predicted using a simple system of static first-order ...removing ...
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The Impact of Consumer Inattention on Insurer Pricing in the Medicare Part D Program
... Medicare Part D presents a novel privatized structure for a government pharmaceutical benefit. Incentives for firms to provide low prices and high quality are generated by consumers who choose among multiple insurance ...
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Inattention and Inertia in Household Finance: Evidence from the Danish Mortgage Market
... In this paper we have presented an analysis of sluggish mortgage re…nancing behavior among Danish households. The Danish context is particularly advantageous for studying this type of household behavior because the ...
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Factors Responsible for Learners Inattention in Selected Secondary School in Bo City
... Inattention seems to be one of the major causes of slow learning in Sierra Leone. The government’s new direction on free – quality education, teachers and parents follow various approaches to get pupils more ...
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(Ir)rational Voters?
... Support for the assertion that agents act \as if" they are boundedly rational comes from several key pieces of evidence. First, not only do individuals who cast split tickets substitute toward the nominee of a ...
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Rational approximations to rational models : alternative algorithms for category learning
... Sampling also avoids the necessity of precise representations. It is implausible that people would make deterministic choices based on values that are almost exactly equal, but this is what the local MAP algorithm ...
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The definition of rational investment
... З наведених тверджень випливає, що множини типу Ak і тільки вони є рішеннями задачі векторної оптимізації 6, якщо не звертати увагу на фінансові обмеження.. Облік фінансових обмежень зак[r] ...
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Early visual foraging in relationship to familial risk for autism and hyperactivity/inattention
... visits being revisits. In contrast, by 3 years of age, when faced with a new visual scene, children randomly choose whether to explore a new AOI or revisit. Thus, although we observe a decrease with age in exploitative ...
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