The Social Value of Information in a Business-Cycle Model
Does welfare improve when firms have more information about the state of the economy and can better coordinate their production and pricing decisions? We address this question in a business-cycle model that highlights how informational frictions can be the source of both nominal and real rigidity. We then elaborate on how the answer to this question depends on each of these rigidities, on the sources of the business cycle, and on the conduct of monetary policy.
|Date of creation:||2015|
|Contact details of provider:|| Postal: Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA|
Web page: http://www.EconomicDynamics.org/
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- Jennifer La'O & George-Marios Angeletos, 2009.
"Dispersed Information over the Business Cycle: Optimal Fiscal and Monetary Policy,"
2009 Meeting Papers
221, Society for Economic Dynamics.
- Jennifer La'O & George-Marios Angeletos, 2011. "Dispersed Information over the Business Cycle: Optimal Fiscal and Monetary Policy," 2011 Meeting Papers 1381, Society for Economic Dynamics.
- Mauro F Roca, 2010. "Transparency and Monetary Policy with Imperfect Common Knowledge," IMF Working Papers 10/91, International Monetary Fund.
- Baeriswyl, Romain & Cornand, Camille, 2010. "The signaling role of policy actions," Journal of Monetary Economics, Elsevier, vol. 57(6), pages 682-695, September.
- Jordi Galí, 2008. "Introduction to Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework," Introductory Chapters,in: Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework Princeton University Press.
- Leonardo Melosi, 2009. "A Likelihood Analysis of Models with Information Frictions," 2009 Meeting Papers 1034, Society for Economic Dynamics.
- Leonardo Melosi, 2009. "A Likelihood Analysis of Models with Information Frictions," PIER Working Paper Archive 09-009, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
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