| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5060605 | Economics Letters | 2012 | 4 Pages |
Abstract
⺠We study the dynamics of a simple macroeconomic model under optimized rationality. ⺠Optimized rational behavior implies weighting costs of information acquisition. ⺠Agents may find it optimal to purchase an imperfect signal on true future values. ⺠The selection of an optimal degree of rationality deviates the economy from the perfect foresight outcome. ⺠The rationality assumption eventually generates long-term endogenous fluctuations, that otherwise are absent.
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Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Orlando Gomes,