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Information-consistent learning and shifts in long-run productivity

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  • Fout, Hamilton B.
  • Francis, Neville R.

Abstract

Recent macroeconomic research has incorporated learning in an inconsistent manner by assuming agents learn with less information than they use in optimization. We present an information-consistent learning framework and illustrate the effects of violating information-consistency.

Suggested Citation

  • Fout, Hamilton B. & Francis, Neville R., 2011. "Information-consistent learning and shifts in long-run productivity," Economics Letters, Elsevier, vol. 111(1), pages 91-94, April.
    • Handle: RePEc:eee:ecolet:v:111:y:2011:i:1:p:91-94
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    References listed on IDEAS

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    1. Jordi Gali, 1999. "Technology, Employment, and the Business Cycle: Do Technology Shocks Explain Aggregate Fluctuations?," American Economic Review, American Economic Association, vol. 89(1), pages 249-271, March.
    2. Edge, Rochelle M. & Laubach, Thomas & Williams, John C., 2007. "Learning and shifts in long-run productivity growth," Journal of Monetary Economics, Elsevier, vol. 54(8), pages 2421-2438, November.
    3. James B. Bullard & John Duffy, 2004. "Learning and structural change in macroeconomic data," Working Papers 2004-016, Federal Reserve Bank of St. Louis.
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    Cited by:

    1. Liam Graham, 2011. "Learning, information and heterogeneity," CDMA Working Paper Series 201113, Centre for Dynamic Macroeconomic Analysis.
    2. Ling Sun, 2018. "Delayed Output Response to Productivity Shocks in a Monetary Search Model," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 46(3), pages 251-266, September.

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