Last edited by Voodoogor
Monday, July 20, 2020 | History

2 edition of Incomplete information, higher order beliefs, and price inertia found in the catalog.

Incomplete information, higher order beliefs, and price inertia

by Marios Angeletos

  • 12 Want to read
  • 37 Currently reading

Published by Massachusetts Institute of Technology, Dept. of Economics in Cambridge, MA .
Written in English


About the Edition

This paper investigates who incomplete information impacts the response of prices to nominal shocks. Our baseline model is a variant of the Calvo model in which firms observe the underlying nominal shocks with noise. In this model, the response of prices is pinned down by three parameters: the precision of available information about the nominal shock; the frequency of price adjustment; and the degree of strategic complementarity in pricing decisions. This result synthesizes the broader lessons of the pertinent literature. We next highlight that his synthesis provides only a partial view of the role or incomplete information. In general, the precision of information does not pin down the response of higher-order beliefs. Therefore, once cannot quantify the degree of price inertia without additional information about the dynamics of higher-order beliefs, or the agents" forecasts of inflation. We highlight the distinct role of higher-order beliefs with three extensions of our baseline model, all of which break the tight connection between the precision of information and higher-order beliefs featured in previous work. Keywords: Business cycles, fluctuations, heterogeneous information, informational frictions, noise, strategic complementarity, higher-order beliefs. JEL Classifications: C7, D6, D8.

Edition Notes

Statement[by] George-Marios Angeletos [and] Jennifer La"O
SeriesWorking paper series / Massachusetts Institute of Technology, Dept. of Economics -- working paper 09-18, Working paper (Massachusetts Institute of Technology. Dept. of Economics) -- no. 09-18.
ContributionsLa"O, Jennifer, Massachusetts Institute of Technology. Dept. of Economics
The Physical Object
Pagination37 p. :
Number of Pages37
ID Numbers
Open LibraryOL24647038M
OCLC/WorldCa672334525

It is therefore useful to identify strategic environments with incomplete information that are rich enough to capture the important role of higher-order beliefs in economic settings, but simple enough to allow tractable analysis. Global games, first studied by Carlsson and . “Incomplete Information, Higher-Order Beliefs and Price Inertia," with George-Marios Angeletos. Journal of Monetary Economics. October , 56(S), old working papers.

Myopia and Anchoring George-Marios Angeletos* Zhen Huo† Ap Abstract We consider a stationary setting featuring forward-looking behavior,slow learning,and higher-order. The Limits of Price Discrimination, American Economic Review, , , , with Benjamin Brooks and Stephen Morris “Robust Predictions in Games with Incomplete Information”, Econometrica, , 81, , with Stephen Morris.

Angeletos and La'O "Incomplete Information, Higher-Order Beliefs and the Inertia of Prices in the Calvo Model" (JME, ) 2 Reading Group. Coval, Jurek and Stafford's "Economic Catastrophe Bonds" (AER, ) Lorenzoni's "Optimal Monetary Policy with Uncertain Fundamentals and Dispersed Information" (REStud ) 3 Book Reviews.   The price-to-book (P/B) ratio has been favored by value investors for decades and is widely used by market analysts. Traditionally, any value under is considered a .


Share this book
You might also like
Soviet political elites

Soviet political elites

Nondestructive and Ultrasonic Testing for Aircraft (Aviation Technician Series)

Nondestructive and Ultrasonic Testing for Aircraft (Aviation Technician Series)

The merchant of Venice

The merchant of Venice

Construction specifications writing

Construction specifications writing

folk theorem in stochastic games with and without discounting

folk theorem in stochastic games with and without discounting

Concentration in the Manufacturing Industries of Canada

Concentration in the Manufacturing Industries of Canada

My second big story-book.

My second big story-book.

Capital gains.

Capital gains.

Before we eat

Before we eat

The Master Must Die

The Master Must Die

Problem Solving Book, Grade 5

Problem Solving Book, Grade 5

The prompter; or A commentary on common sayings and subjects, which are full of common sense, the best sense in the world.

The prompter; or A commentary on common sayings and subjects, which are full of common sense, the best sense in the world.

Andy Goldsworthy, sheepfolds

Andy Goldsworthy, sheepfolds

A continuation of the Reverend Mr Whitefields journal

A continuation of the Reverend Mr Whitefields journal

Incomplete information, higher order beliefs, and price inertia by Marios Angeletos Download PDF EPUB FB2

Incomplete Information, Higher-Order Beliefs and Price Inertia George-Marios Angeletos, Jennifer La'O. NBER Working Paper No. Issued higher order beliefs May NBER Program(s):Economic Fluctuations and Growth, Monetary Economics.

This paper investigates who incomplete information impacts the response of prices to nominal by: IncompleteInformation,Higher-OrderBeliefs andPriceInertia* George-MariosAngeletos JenniferLa'O MITandNBER MIT March31, Abstract.

However, this synthesis provides only a partial view of the role of incomplete information. Once one allows for more general information structures than those used in previous work, one cannot quantify the degree of price inertia without data on the dynamics of higher-order beliefs, or of the agents’ forecasts of by:   However, this synthesis provides only a partial view of the role of incomplete information.

Once one allows for more general information structures than those used in previous work, one cannot quantify the degree of price inertia without data on the dynamics of higher-order beliefs, or of the agents’ forecasts of by: Incomplete Information, Higher-Order Beliefs and Price Inertia George-Marios Angeletos MIT and NBER Jennifer La’O MIT Ma Abstract.

However, this synthesis provides only a partial view of the role of incomplete information. Once one allows for more general information structures than those used in previous work, one cannot.

In general, the precision of information does not pin down the response of higher-order beliefs. Therefore, once cannot quantify the degree of price inertia without additional information about the dynamics of higher-order beliefs, or the agents' forecasts of inflation.

Calvo, Celasun, and Kumhof: w Inflation Inertia and Credible Disinflation - The Open Economy Case: Angeletos and La'O: w Incomplete Information, Higher-Order Beliefs and Price Inertia: Blanchard: w Price Asynchronization and Price Level Inertia: Edwards: w The Order of Liberalization of the Current and Capital Accounts of the Balance of Payments.

In general, the precision of information does not pin down the response of higher-order beliefs. Therefore, one cannot quantify the degree of price inertia without additional information about the.

In general, the precision of information does not pin down the response of higher-order beliefs. Therefore, one cannot quantify the degree of price inertia without additional information about the dynamics of higherorder beliefs, or the agents’ forecasts of inflation.

Incomplete information, higher order beliefs, and price inertia. By Marios Angeletos and Jennifer La'O. Abstract. Topics: Prices, Information theory in economics. Incomplete Information, Higher-Order Beliefs, and Price Inertia Journal of Monetary Economics S1 (), with Jennifer La'O.

Policy with Dispersed Information Journal of the European Economic Association (), with Alessandro Pavan. Revisiting the Supply-Side Effects of. By implication, one cannot calibrate the degree of price inertia without additional information about the behavior of higher-order beliefs.

We highlight the crucial, and distinct, role of higher-order beliefs with three extensions of our baseline model. Incomplete Information, Higher-Order Beliefs and the Inertia of Prices in the Calvo Model George-Marios Angeletos MIT and NBER Jennifer La’O MIT Novem Abstract This paper investigates how incomplete information interacts with sticky prices in deter-miningtheresponseofpricestonominalshocks.

OurbaselinemodelisavariantoftheCalvo. Get this from a library. Incomplete Information, Higher-Order Beliefs and Price Inertia. [George-Marios Angeletos; La'O Jennifer.; National Bureau of Economic Research.] -- Abstract: This paper investigates who incomplete information impacts the response of prices to nominal shocks.

Our baseline model is a variant of the Calvo model in which firms observe the underlying. Incomplete information, higher-order beliefs and price inertia. [Marios Angeletos; Jennifer La'O; National Bureau of Economic Research.] -- This paper investigates who incomplete information impacts the response of prices to nominal shocks.

beliefs in macroeconomics. The topics covered include news shocks, uncertainty-driven business cycles, sentiments, coordination games with heterogeneous beliefs (global games), bayesian learning, dispersed information in DSGE models, forecasting the forecast of others, etc.

A first. However, this synthesis provides only a partial view of the role of incomplete information: once one allows for more general information structures than those used in previous work, one cannot quantify the degree of price inertia without additional information about the dynamics of higher-order beliefs, or of the agents' forecasts of inflation.

Incomplete information, higher-order beliefs and price inertia Journal of Monetary Economics,56, (S), SS37 View citations (48) See also Working Paper () Policy with Dispersed Information Journal of the European Economic Association,7.

Mackowiak, Bartosz, and Mirko Wiederholt. "Optimal Sticky Prices under Rational Inattention." American Economic Rev no. 3 (): – Mankiw, N. Gregory, and Ricardo Reis. "Sticky Information versus Sticky Prices: A Proposal to Replace the New Keynesian Phillips Curve." Quarterly Journal of Economicsno.

4 (): –. Citations (a): “Incomplete Information, Higher-Order Beliefs and Price Inertia.” Antonella (): “The Rigidity of Choice.4 Bibliography [1] ANGELETOS, G.-M.; LA’O, J. Incomplete information, higher-order beliefs and prices inertia.

Journal of Monetary Economics, 56(Suplement1):SIncomplete Information,” – Problem 1. 2. Mackowiak, Bartosz, and Mirko Wiederhold (), Optimal Sticky Prices under Rational Inattention,” – Problem 3.

1 Bergemann, Morris. Following Bergemann, Morris approach of characterizing BNE over all information struc­ tures do the following exercises (notations are as in the class).