Rational inattention

Created
Thu, 02/03/2023 - 20:00
Vania Esady In macroeconomic models, economic agents are often assumed to perfectly observe the current state, but in reality they have to infer current conditions (nowcast). Because of information costs, this is not always easy. Information costs are not observable in the data but they can be proxied. A good proxy is disagreement on a … Continue reading Time-varying disagreement and monetary transmission