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

• 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

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...