The private memory of aggregate uncertainty

Business cycle fluctuations in Mirrlees economies: The case of i.i.d. shocks

“…In fact, this lack of memory in the case of no capital and logarithmic preferences has already been shown by da Costa and Luz (2018). In that paper, da Costa and Luz consider a finite horizon version of Phelan's economy in which agents have CRRA preferences and live as long as the economy.…”

“…However, interactions with aggregate fluctuations have been mostly neglected in the literature. Notable exceptions are Phelan (1994), da Costa and Luz (2018), Werning (2007), and Scheuer (2013). Phelan (1994) considered a production economy without capital, hidden actions, i.i.d.…”

Aggregate Dynamics in Mirrlees Economies: The Case of Persistent Shocks

“…There is a long literature introducing information frictions into macro models. Examples include Atkeson and Lucas (1992), da Costa and Luz (2018), Green (1987), Phelan (1994), Scheuer (2013), and Werning (2007 (see Veracierto (2021) for a review). The most closely related papers to this one are Farhi and Werning (2012), Kapicka (2013) and Veracierto (2021).…”

Moral Hazard, Optimal Unemployment Insurance, and Aggregate Dynamics

“…However, interactions with aggregate fluctuations have been mostly neglected in this literature. Notable exceptions are Phelan (1994), da Costa andLuz (2018), Werning (2007), Scheuer (2013), andVeracierto (2021). The most closely related paper is Veracierto (2021), since it also solves the mechanism design problem of an RBC economy subject to information frictions.…”