Agent-Based Learning in 'Islands' with 'Sticky Information': An Explanation for the Persistence of Real Effects

This paper outlines a model where a household forms subjective expectations about his income by 'anchoring' on a professional's forecasts of the aggregate economy. Hence, the household is able to form relative (or real) income expectations. However, he observes the professional's...

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Published in:Journal of Money, Credit, and Banking
Main Authors: Easaw, Joshy Z., Ghoshray, Atanu
Format: Article in Journal/Newspaper
Language:unknown
Subjects:
Phelps Island
Online Access:https://doi.org/10.1353/mcb.2006.0015
id ftrepec:oai:RePEc:mcb:jmoncb:v:38:y:2006:i:1:p:263-268
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spelling ftrepec:oai:RePEc:mcb:jmoncb:v:38:y:2006:i:1:p:263-268 2024-04-14T08:18:21+00:00 Agent-Based Learning in 'Islands' with 'Sticky Information': An Explanation for the Persistence of Real Effects Easaw, Joshy Z. Ghoshray, Atanu https://doi.org/10.1353/mcb.2006.0015 unknown http://dx.doi.org/10.1353/mcb.2006.0015 article ftrepec https://doi.org/10.1353/mcb.2006.0015 2024-03-19T10:35:23Z This paper outlines a model where a household forms subjective expectations about his income by 'anchoring' on a professional's forecasts of the aggregate economy. Hence, the household is able to form relative (or real) income expectations. However, he observes the professional's forecasts imperfectly and only adjusts his expectations partially. Using the 'Lucas-Phelps Island' scenario, set in the context of households, we show how persistence of real effects could arise in such a scenario. Article in Journal/Newspaper Phelps Island RePEc (Research Papers in Economics) Phelps Island ENVELOPE(110.500,110.500,-66.283,-66.283) Journal of Money, Credit, and Banking 38 1 263 268
institution Open Polar
collection RePEc (Research Papers in Economics)
op_collection_id ftrepec
language unknown
description This paper outlines a model where a household forms subjective expectations about his income by 'anchoring' on a professional's forecasts of the aggregate economy. Hence, the household is able to form relative (or real) income expectations. However, he observes the professional's forecasts imperfectly and only adjusts his expectations partially. Using the 'Lucas-Phelps Island' scenario, set in the context of households, we show how persistence of real effects could arise in such a scenario.
format Article in Journal/Newspaper
author Easaw, Joshy Z.
Ghoshray, Atanu
spellingShingle Easaw, Joshy Z.
Ghoshray, Atanu
Agent-Based Learning in 'Islands' with 'Sticky Information': An Explanation for the Persistence of Real Effects
author_facet Easaw, Joshy Z.
Ghoshray, Atanu
author_sort Easaw, Joshy Z.
title Agent-Based Learning in 'Islands' with 'Sticky Information': An Explanation for the Persistence of Real Effects
title_short Agent-Based Learning in 'Islands' with 'Sticky Information': An Explanation for the Persistence of Real Effects
title_full Agent-Based Learning in 'Islands' with 'Sticky Information': An Explanation for the Persistence of Real Effects
title_fullStr Agent-Based Learning in 'Islands' with 'Sticky Information': An Explanation for the Persistence of Real Effects
title_full_unstemmed Agent-Based Learning in 'Islands' with 'Sticky Information': An Explanation for the Persistence of Real Effects
title_sort agent-based learning in 'islands' with 'sticky information': an explanation for the persistence of real effects
url https://doi.org/10.1353/mcb.2006.0015
long_lat ENVELOPE(110.500,110.500,-66.283,-66.283)
geographic Phelps Island
geographic_facet Phelps Island
genre Phelps Island
genre_facet Phelps Island
op_relation http://dx.doi.org/10.1353/mcb.2006.0015
op_doi https://doi.org/10.1353/mcb.2006.0015
container_title Journal of Money, Credit, and Banking
container_volume 38
container_issue 1
container_start_page 263
op_container_end_page 268
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