1 option
Behavioral Theories of the Business Cycle / Nir Jaimovich, Sergio Rebelo.
- Format:
- Book
- Author/Creator:
- Jaimovich, Nir.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w12570.
- NBER working paper series no. w12570
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2006.
- Summary:
- We explore the business cycle implications of expectation shocks and of two well-known psychological biases, optimism and overconfidence. The expectations of optimistic agents are biased toward good outcomes, while overconfident agents overestimate the precision of the signals that they receive. Both expectation shocks and overconfidence can increase business-cycle volatility, while preserving the model's properties in terms of comovement, and relative volatilities. In contrast, optimism is not a useful source of volatility in our model.
- Notes:
- Print version record
- October 2006.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.