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Rational inattention during an RCT

Author

Listed:
  • Maćkowiak, Bartosz
  • Wiederholt, Mirko

Abstract

We introduce an information provision experiment into a standard dynamic rational inattention model. We derive analytical results about how the treatment effect varies with characteristics of the environment and the individual. We use these results to discuss findings in the empirical literature on information provision experiments that can be explained by rational inattention of survey respondents and what this interpretation implies about behavior outside the survey. JEL Classification: D8, D9, E7

Suggested Citation

  • Maćkowiak, Bartosz & Wiederholt, Mirko, 2025. "Rational inattention during an RCT," Working Paper Series 3054, European Central Bank.
    • Handle: RePEc:ecb:ecbwps:20253054
    Note: 1026376
    as

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    References listed on IDEAS

    as
    1. Maćkowiak, Bartosz & Matějka, Filip & Wiederholt, Mirko, 2018. "Dynamic rational inattention: Analytical results," Journal of Economic Theory, Elsevier, vol. 176(C), pages 650-692.
    2. Olivier Coibion & Yuriy Gorodnichenko & Michael Weber, 2022. "Monetary Policy Communications and Their Effects on Household Inflation Expectations," Journal of Political Economy, University of Chicago Press, vol. 130(6), pages 1537-1584.
    3. Hassan Afrouzi & Choongryul Yang, 2021. "Dynamic Rational Inattention and the Phillips Curve," CESifo Working Paper Series 8840, CESifo.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    information provision experiment; randomized control trial; rational inattention;
    All these keywords.

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • E7 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics

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