Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5061603 | Economics Letters | 2009 | 4 Pages |
Abstract
In a Bayesian model, a rational-expectations Euler equation involves a learning wedge that disconnects the consumer's IMRS from the rational-expectations pricing kernel. The wedge is extremely volatile and explains the high volatility of the rational-expectations pricing kernel.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Timothy Cogley,