Sticky Information Diffusion and the Inertial Behavior of Durables Consumption
نویسندگان
چکیده
منابع مشابه
Sticky Information Diffusion and the Inertial Behavior of Durables Consumption∗
This paper studies the dynamics of durable and nondurable consumption under two alternative assumptions about information updating by households – rational inattention and sticky expectations. We first show that the two types of sticky information diffusion can help generate strong excess smoothness in durables consumption. We then find that sticky expectations due to a fixed cost does a better...
متن کاملSticky Information Diffusion and Inertial Behavior of Durables Consumption∗
This paper studies the dynamics of durable and nondurable consumption under two alternative assumptions about information updating by households — rational inattention and sticky expectations. We find that sticky expectations due to a fixed cost does a better job of reproducing the infrequent adjustments at the individual level and the slow adjustments at the aggregate level. We then show that ...
متن کاملSticky Information Diffusion and the Inertial Behavior of Durable Consumption
This paper studies the aggregate dynamics of durable and nondurable consumption under sticky information diffusion (SID) due to noisy observations and slow learning within the permanent income framework. We show that SID can significantly improve the model’s predictions on the joint behavior of income, durable, and nondurable consumption at the aggregate level. Specifically, we find that SID ca...
متن کاملSlow Information Diffusion and the Inertial Behavior of Durable Consumption∗
This paper studies the aggregate dynamics of durable and nondurable consumption under slow information diffusion (SID) due to noisy observations and learning within the permanent income framework. We show that SID can significantly improve the model’s predictions on the joint behavior of income, durable consumption, and nondurable consumption at the aggregate level. Specifically, we find that S...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2009
ISSN: 1556-5068
DOI: 10.2139/ssrn.1645058