Business cycle amplification with heterogeneous expectations

DOI10.1007/S00199-010-0541-2zbMATH Open1214.91081OpenAlexW2056787795MaRDI QIDQ540410FDOQ540410

Authors: William A. Branch, Bruce McGough 

Publication date: 3 June 2011

Published in: Economic Theory (Search for Journal in Brave)

Full work available at URL: https://doi.org/10.1007/s00199-010-0541-2

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zbMATH Keywords

propagationreal business cyclesheterogeneous expectationsrestricted perceptions

Mathematics Subject Classification ID

Dynamic stochastic general equilibrium theory (91B51) Economic dynamics (91B55) Heterogeneous agent models (91B69)

Cites Work

• Convergence of least squares learning mechanisms in self-referential linear stochastic models
• Intrinsic heterogeneity in expectation formation
• A Rational Route to Randomness
• The Solution of Linear Difference Models under Rational Expectations
• On the structure and diversity of rational beliefs
• A New Keynesian model with heterogeneous expectations
• Monetary policy and heterogeneous expectations
• Animal spirits and monetary policy
• The diversity of forecasts from macroeconomic models of the US economy
• When can changes in expectations cause business cycle fluctuations in neo-classical settings?
• Financial leverage and market volatility with diverse beliefs
• Money non-neutrality in a rational belief equilibrium with financial assets
• Diverse beliefs and time variability of risk premia
• Rules of thumb in macroeconomic equilibrium
• Endogenous uncertainty and the non-neutrality of money
• The role of expectations in economic fluctuations and the efficacy of monetary policy

Cited In (23)

• Labor hoarding, superior information, and business cycle dynamics
• Diagnostic business cycles
• Nonlinear Expectation Formation, Endogenous Business Cycles and Stylized Facts
• Adaptive learning and distributional dynamics in an incomplete markets model
• When can changes in expectations cause business cycle fluctuations in neo-classical settings?
• Heuristic expectation formation and business cycles: a simple linear model
• Should business rely on business cycle forecasting?
• Are the representative agent's beliefs based on efficient econometric models?
• Monetary policy and heterogeneous expectations
• The diversity of forecasts from macroeconomic models of the US economy
• Heterogeneous expectations and debt in a growth model for a small open economy
• Learnability of an equilibrium with private information
• The role of cognitive limitations and heterogeneous expectations for aggregate production and credit cycle
• Business cycle accounting with model consistent expectations
• Expectational coordination in simple economic contexts. Concepts and analysis with emphasis on strategic substituabilities
• Formation of rationally heterogeneous expectations
• Modeling diverse expectations in an aggregated New Keynesian model
• Cattle cycles, heterogeneous expectations and the age distribution of capital
• Policy change and learning in the RBC model
• Heterogeneity and learning with complete markets
• E-stability in the stochastic Ramsey model
• Diverse beliefs and time variability of risk premia
• Adaptive learning, endogenous uncertainty, and asymmetric dynamics

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