Behavioral New Keynesian Models: An empirical assessment

Meggiorini, Greta

doi:10.1016/j.jmacro.2023.103538

Journal of Macroeconomics

2023

DOI: 10.1016/j.jmacro.2023.103538

|View full text |Cite

Behavioral New Keynesian Models: An empirical assessment

Greta Meggiorini

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...

Citation Types

Supporting

Mentioning

Contrasting

Year Published

2023

2024

Publication Types

Select...

Article3

Relationship

Self Cite0

Independent3

Authors

Journals

Cited by 3 publications

References 23 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

Monetary and macroprudential policies: How to Be green? A political-economy approach

Masciandaro,

Russo

2024

Economic Modelling

View full text Add to dashboard Cite

Monetary and macroprudential policies: How to Be green? A political-economy approach

Masciandaro,

Russo

2024

Economic Modelling

View full text Add to dashboard Cite

Marshall Lecture 2023: Behavioral Macroeconomics via Sparse Dynamic Programming

Gabaix

2023

Journal of the European Economic Association

View full text Add to dashboard Cite

This paper proposes a tractable way to model boundedly rational dynamic programming. The agent uses an endogenously simplified, or “sparse,” model of the world and the consequences of his actions and acts according to a behavioral Bellman equation. The framework yields a behavioral version of some of the canonical models in macroeconomics and finance. In the life-cycle model, the agent initially does not pay much attention to retirement and undersaves; late in life, he progressively saves more, generating realistic dynamics. In the consumption-savings model, the consumer decides to pay little or no attention to the interest rate and more attention to his income. Ricardian equivalence and the Lucas critique partially fail because the consumer may not pay full attention to taxes and policy changes. In a Merton-style dynamic portfolio choice problem, the agent endogenously pays limited or no attention to the varying equity premium and hedging demand terms. Finally, in the neoclassical growth model, agents act on a simplified model of the macroeconomy; in equilibrium, fluctuations are larger and more persistent.

show abstract

Optimal Monetary and Fiscal Policy under Bounded Rationality

Zhao

2024

SSRN Journal

View full text Add to dashboard Cite

scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.

Contact Info

customersupport@researchsolutions.com

10624 S. Eastern Ave., Ste. A-614

Henderson, NV 89052, USA

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Blog Terms and Conditions API Terms Privacy Policy Contact Cookie Preferences Do Not Sell or Share My Personal Information

Made with 💙 for researchers

Part of the Research Solutions Family.

Behavioral New Keynesian Models: An empirical assessment

Cited by 3 publications

References 23 publications

Monetary and macroprudential policies: How to Be green? A political-economy approach

Monetary and macroprudential policies: How to Be green? A political-economy approach

Marshall Lecture 2023: Behavioral Macroeconomics via Sparse Dynamic Programming

Optimal Monetary and Fiscal Policy under Bounded Rationality

Contact Info

Product

Resources

About