Does Near-Rationality Matter in First-Order Approximate Solutions? A Perturbation Approach
Author
Abstract
Suggested Citation
Download full text from publisher
References listed on IDEAS
- Frank Hespeler, 2008.
"Solution Algorithm to a Class of Monetary Rational Equilibrium Macromodels with Optimal Monetary Policy Design,"
Computational Economics, Springer;Society for Computational Economics, vol. 31(3), pages 207-223, April.
- Frank Hespeler, 2007. "Solution Algorithm to a Class of Monetary Rational Equilibrium Macromodels with Optimal Monetary Policy Design," EcoMod2007 23900036, EcoMod.
- Hong Lan & Alexander Meyer-Gohde, 2012.
"Existence and Uniqueness of Perturbation Solutions to DSGE Models,"
SFB 649 Discussion Papers
SFB649DP2012-015, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
- Lan, Hong & Meyer-Gohde, Alexander, 2012. "Existence and Uniqueness of Perturbation Solutions in DSGE Models," Dynare Working Papers 14, CEPREMAP.
- Michael Woodford, 2010.
"Robustly Optimal Monetary Policy with Near-Rational Expectations,"
American Economic Review, American Economic Association, vol. 100(1), pages 274-303, March.
- Woodford, Michael, 2005. "Robustly optimal monetary policy with near-rational expectations," CFS Working Paper Series 2007/12, Center for Financial Studies (CFS).
- Michael Woodford, 2005. "Robustly Optimal Monetary Policy with Near Rational Expectations," NBER Working Papers 11896, National Bureau of Economic Research, Inc.
- Michael Woodford, 2007. "Robustly Optimal Monetary Policy with Near-Rational Expectations," CFS Working Paper Series 2007/12, Center for Financial Studies.
- Adam, Klaus & Woodford, Michael, 2012.
"Robustly optimal monetary policy in a microfounded New Keynesian model,"
Journal of Monetary Economics, Elsevier, vol. 59(5), pages 468-487.
- Adam, Klaus & Woodford, Michael, 2012. "Robustly optimal monetary policy in a microfounded new Keynesian model," Working Papers 12-01, University of Mannheim, Department of Economics.
- Adam, Klaus & Woodford, Michael, 2012. "Robustly Optimal Monetary Policy in a Microfounded New Keynesian Model," CEPR Discussion Papers 8826, C.E.P.R. Discussion Papers.
- Schmitt-Grohe, Stephanie & Uribe, Martin, 2004.
"Solving dynamic general equilibrium models using a second-order approximation to the policy function,"
Journal of Economic Dynamics and Control, Elsevier, vol. 28(4), pages 755-775, January.
- Stephanie Schmitt-Grohe & Martin Uribe, 2001. "Solving Dynamic General Equilibrium Models Using a Second-Order Approximation to the Policy Function," Departmental Working Papers 200106, Rutgers University, Department of Economics.
- Stephanie Schmitt-Grohe & Martin Uribe, 2002. "Solving Dynamic General Equilibrium Models Using a Second-Order Approximation to the Policy Function," NBER Technical Working Papers 0282, National Bureau of Economic Research, Inc.
- Schmitt-Grohé, Stephanie & Uribe, Martín, 2001. "Solving Dynamic General Equilibrium Models Using a Second-Order Approximation to the Policy Function," CEPR Discussion Papers 2963, C.E.P.R. Discussion Papers.
- Hansen, Lars Peter & Sargent, Thomas J., 2005. "Robust estimation and control under commitment," Journal of Economic Theory, Elsevier, vol. 124(2), pages 258-301, October.
- Beyer, Andreas & Farmer, Roger E.A., 2008.
"What We Don'T Know About The Monetary Transmission Mechanism And Why We Don'T Know It,"
Macroeconomic Dynamics, Cambridge University Press, vol. 12(S1), pages 60-74, April.
- Beyer, Andreas & Farmer, Roger E A, 2004. "What We Don't Know About the Monetary Transmission Mechanism and Why We Don't Know It," CEPR Discussion Papers 4811, C.E.P.R. Discussion Papers.
- Benigno, Pierpaolo & Paciello, Luigi, 2014.
"Monetary policy, doubts and asset prices,"
Journal of Monetary Economics, Elsevier, vol. 64(C), pages 85-98.
- Pierpaolo Benigno & Luigi Paciello, 2010. "Monetary Policy, Doubts and Asset Prices," NBER Working Papers 16386, National Bureau of Economic Research, Inc.
- Pierpaolo Beningo & Luigi Paciello, 2011. "Monetary Policy, Doubts and Asset Prices," 2011 Meeting Papers 857, Society for Economic Dynamics.
- Pierpaolo Benigno & Luigi Paciello, 2010. "Monetary Policy, Doubts and Asset Prices," EIEF Working Papers Series 1024, Einaudi Institute for Economics and Finance (EIEF), revised Sep 2010.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Frank Hespeler & Marco M. Sorge, 2018. "Does Near†Rationality Matter In First†Order Approximate Solutions? A Perturbation Approach," Bulletin of Economic Research, Wiley Blackwell, vol. 70(1), pages 97-113, January.
- Benigno, Pierpaolo & Paciello, Luigi, 2014.
"Monetary policy, doubts and asset prices,"
Journal of Monetary Economics, Elsevier, vol. 64(C), pages 85-98.
- Pierpaolo Benigno & Luigi Paciello, 2010. "Monetary Policy, Doubts and Asset Prices," NBER Working Papers 16386, National Bureau of Economic Research, Inc.
- Pierpaolo Beningo & Luigi Paciello, 2011. "Monetary Policy, Doubts and Asset Prices," 2011 Meeting Papers 857, Society for Economic Dynamics.
- Pierpaolo Benigno & Luigi Paciello, 2010. "Monetary Policy, Doubts and Asset Prices," EIEF Working Papers Series 1024, Einaudi Institute for Economics and Finance (EIEF), revised Sep 2010.
- Adam, Klaus & Woodford, Michael, 2021.
"Robustly optimal monetary policy in a new Keynesian model with housing,"
Journal of Economic Theory, Elsevier, vol. 198(C).
- Klaus Adam & Michael Woodford, 2020. "Robustly Optimal Monetary Policy in a New Keynesian Model with Housing," CESifo Working Paper Series 8127, CESifo.
- Adam, Klaus & Woodford, Michael, 2020. "Robustly Optimal Monetary Policy in a New Keynesian Model with Housing," CEPR Discussion Papers 14445, C.E.P.R. Discussion Papers.
- Klaus Adam & Michael Woodford, 2020. "Robustly Optimal Monetary Policy in a New Keynesian Model With Housing," CRC TR 224 Discussion Paper Series crctr224_2020_154, University of Bonn and University of Mannheim, Germany.
- Klaus Adam & Michael Woodford, 2020. "Robustly Optimal Monetary Policy in a New Keynesian Model with Housing," NBER Working Papers 26833, National Bureau of Economic Research, Inc.
- Klaus Adam & Michael Woodford, 2018.
"Leaning Against Housing Prices as Robustly Optimal Monetary Policy,"
CESifo Working Paper Series
7071, CESifo.
- Adam, Klaus & Woodford, Michael, 2018. "Leaning Against Housing Prices as Robustly Optimal Monetary Policy," CEPR Discussion Papers 12937, C.E.P.R. Discussion Papers.
- Klaus Adam & Michael Woodford, 2018. "Leaning Against Housing Prices as Robustly Optimal Monetary Policy," NBER Working Papers 24629, National Bureau of Economic Research, Inc.
- Klaus Adam & Michael Woodford, 2018. "Leaning Against Housing Prices as Robustly Optimal Monetary Policy," CRC TR 224 Discussion Paper Series crctr224_2018_016, University of Bonn and University of Mannheim, Germany.
- Adam, Klaus & Woodford, Michael, 2018. "Leaning against housing prices as robustly optimal monetary policy," CFS Working Paper Series 601, Center for Financial Studies (CFS).
- Adam, Klaus & Woodford, Michael, 2012.
"Robustly optimal monetary policy in a microfounded New Keynesian model,"
Journal of Monetary Economics, Elsevier, vol. 59(5), pages 468-487.
- Adam, Klaus & Woodford, Michael, 2012. "Robustly Optimal Monetary Policy in a Microfounded New Keynesian Model," CEPR Discussion Papers 8826, C.E.P.R. Discussion Papers.
- Adam, Klaus & Woodford, Michael, 2012. "Robustly optimal monetary policy in a microfounded new Keynesian model," Working Papers 12-01, University of Mannheim, Department of Economics.
- Joshua Bernstein & Rupal Kamdar, 2021. "Rationally Inattentive Monetary Policy," CAEPR Working Papers 2021-003 Classification-D, Center for Applied Economics and Policy Research, Department of Economics, Indiana University Bloomington.
- Kyle Jurado, 2016. "Advance Information and Distorted Beliefs in Macroeconomic and Financial Fluctuations," 2016 Meeting Papers 154, Society for Economic Dynamics.
- Anastasios G. Karantounias, 2020. "Model Uncertainty and Policy Design," Policy Hub 2020-17, Federal Reserve Bank of Atlanta.
- Cosmin L. Ilut & Martin Schneider, 2022. "Modeling Uncertainty as Ambiguity: a Review," NBER Working Papers 29915, National Bureau of Economic Research, Inc.
- Joshua Bernstein & Rupal Kamdar, . "Rationally Inattentive Monetary Policy," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics.
- Michael Woodford, 2010.
"Robustly Optimal Monetary Policy with Near-Rational Expectations,"
American Economic Review, American Economic Association, vol. 100(1), pages 274-303, March.
- Michael Woodford, 2005. "Robustly Optimal Monetary Policy with Near Rational Expectations," NBER Working Papers 11896, National Bureau of Economic Research, Inc.
- Woodford, Michael, 2005. "Robustly optimal monetary policy with near-rational expectations," CFS Working Paper Series 2007/12, Center for Financial Studies (CFS).
- Michael Woodford, 2007. "Robustly Optimal Monetary Policy with Near-Rational Expectations," CFS Working Paper Series 2007/12, Center for Financial Studies.
- Riccardo M Masolo & Francesca Monti, 2021.
"Ambiguity, Monetary Policy and Trend Inflation,"
Journal of the European Economic Association, European Economic Association, vol. 19(2), pages 839-871.
- Masolo, Riccardo & Monti, Francesca, 2015. "Ambiguity, monetary policy and trend inflation," Bank of England working papers 565, Bank of England.
- Ricardo M. Masolo & Francesca Monti, 2017. "Ambiguity, Monetary Policy and Trend Inflation," Discussion Papers 1709, Centre for Macroeconomics (CFM).
- Masolo, Riccardo M. & Monti, Francesca, 2017. "Ambiguity, monetary policy and trend inflation," LSE Research Online Documents on Economics 86165, London School of Economics and Political Science, LSE Library.
- Francesca Monti & Riccardo Maria Masolo, 2017. "Ambiguity, Monetary Policy and Trend Inflation," 2017 Meeting Papers 508, Society for Economic Dynamics.
- Hengjie Ai & Ravi Bansal, 2016. "Risk Preferences and The Macro Announcement Premium," NBER Working Papers 22527, National Bureau of Economic Research, Inc.
- Anastasios G. Karantounias, 2009. "Ramsey Taxation and fear of misspecification," 2009 Meeting Papers 822, Society for Economic Dynamics.
- Cornel OROS & Blandine ZIMMER, 2019. "Myopic governments and conservative central banks: are they compatible?," Working Papers of LaRGE Research Center 2019-06, Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg.
- Svec, Justin, 2012.
"Optimal fiscal policy with robust control,"
Journal of Economic Dynamics and Control, Elsevier, vol. 36(3), pages 349-368.
- Justin Svec, 2010. "Optimal Fiscal Policy with Robust Control," Working Papers 1004, College of the Holy Cross, Department of Economics.
- Hong Lan & Alexander Meyer-Gohde, 2013.
"Pruning in Perturbation DSGE Models - Guidance from Nonlinear Moving Average Approximations,"
SFB 649 Discussion Papers
SFB649DP2013-024, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
- Hong Lan & Alexander Meyer-Gohde, 2013. "Dynare add-on for "Pruning in Perturbation DSGE Models"," QM&RBC Codes 196, Quantitative Macroeconomics & Real Business Cycles.
- Lan, Hong & Meyer-Gohde, Alexander, 2014. "Solvability of perturbation solutions in DSGE models," Journal of Economic Dynamics and Control, Elsevier, vol. 45(C), pages 366-388.
- Lan, Hong & Meyer-Gohde, Alexander, 2012.
"Existence and Uniqueness of Perturbation Solutions in DSGE Models,"
Dynare Working Papers
14, CEPREMAP.
- Hong Lan & Alexander Meyer-Gohde, 2012. "Existence and Uniqueness of Perturbation Solutions to DSGE Models," SFB 649 Discussion Papers SFB649DP2012-015, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
- Kwon, Hyosung & Miao, Jianjun, 2017.
"Three types of robust Ramsey problems in a linear-quadratic framework,"
Journal of Economic Dynamics and Control, Elsevier, vol. 76(C), pages 211-231.
- Hyosung Kwon & Jianjun Miao, 2013. "Three Types of Robjst Ramsey Problem in a Linear-Quadratic Framework," Boston University - Department of Economics - Working Papers Series 2013-019, Boston University - Department of Economics.
More about this item
Keywords
Near-Rationality; Perturbation methods; Equilibrium indeterminacy;All these keywords.
JEL classification:
- D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
- E0 - Macroeconomics and Monetary Economics - - General
- C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
- C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
NEP fields
This paper has been announced in the following NEP Reports:- NEP-MIC-2013-10-02 (Microeconomics)
- NEP-UPT-2013-10-02 (Utility Models & Prospect Theory)
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sef:csefwp:339. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/cssalit.html .
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Maria Carannante (email available below). General contact details of provider: https://edirc.repec.org/data/cssalit.html .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.