The Effects of Permanent and Transitory Shocks under Imperfect Information

Andrew Foerster;  ; Pierre-Daniel Sarte;

doi:10.21144/eq1060201

THE ROLE OF TRANSITORY AND PERSISTENT SHOCKS IN THE CONSUMPTION CORRELATION AND INTERNATIONAL COMOVEMENT PUZZLES

Macroeconomic Dynamics ◽

10.1017/s1365100512000922 ◽

2013 ◽

Vol 18 (6) ◽

pp. 1234-1270 ◽

Cited By ~ 3

Author(s):

Tatsuma Wada

Keyword(s):

Growth Rate ◽

Learning Process ◽

Productivity Growth ◽

Growth Rates ◽

Imperfect Information ◽

Transitory Shocks ◽

Technological Growth ◽

No Consumption

We study a two-country model with changes in the technological growth rate. Such changes are attributed to transitory and persistent shocks in the growth rate of technology. Cases are considered in which agents in two countries do not have enough information to distinguish between the two types of shocks; gradually, however, the persistence of the shock is recognized through the learning process. Utilizing a set of parameters obtained from U.S. and European productivity growth rates, it is then shown that (i) when persistent shocks affect the two countries identically, there is no consumption-correlation puzzle, and the international comovement puzzle becomes imperceptible; and (ii) even when persistent shocks affect the two countries differently, imperfect information plays an important role in explaining both the consumption-correlation puzzle and the international comovement puzzle (provided transitory shocks are strongly internationally correlated and are relatively larger than persistent shocks).

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Economic models of Environment monitoring under imperfect information and high Costs

Voprosy Ekonomiki ◽

10.32609/0042-8736-2014-4-99-122 ◽

2014 ◽

pp. 99-122

Author(s):

M. Levin ◽

K. Matrosova

Keyword(s):

Environmental Monitoring ◽

Environmental Regulation ◽

Environmental Economics ◽

Imperfect Information ◽

Central Element ◽

Economic Models ◽

Environment Monitoring ◽

Nature Protection ◽

Protection Measures ◽

Effective System

The paper considers monitoring of environmental change as the central element of environmental regulation. Monitoring, as each kind of principalagent relations, easily gives rise to corruptive behavior. In the paper we analyze economic models of environmental monitoring with high costs, incomplete information and corruption. These models should be the elements of environmental economics and are needed to create an effective system of nature protection measures.

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strategi dalam pengambilan keputusan

10.31227/osf.io/6j9qf ◽

2019 ◽

Author(s):

Suci Handayani Handayani ◽

Hade Afriansyah

Keyword(s):

Decision Making ◽

Imperfect Information ◽

Economic Value ◽

Decision Makers ◽

Decision Making Process ◽

Administrative Process ◽

Left Behind ◽

Information Time ◽

Complex Matter ◽

General Individuals

Decision making is one element of economic value, especially in the era of globalization, and if it is not acceptable in the decision making process, we will be left behind. According to Robins, (2003: 173), Salusu, (2000: 47), and Razik and Swanson, (1995: 476) say that decision making can be interpreted as a process of choosing a number of alternatives, how to act in accordance with concepts, or rules in solving problems to achieve individual or group goals that have been formulated using a number of specific techniques, approaches and methods and achieve optimal levels of acceptance.Decision making in organizations whether a decision is made for a person or group, the nature of the decision is often determined by rules, policies, prescribed, instructions that have been derived or practices that apply. To understand decision making within the organization it is useful to view decision making as part of the overall administrative process. In general, individuals tend to use simple strategies, even if in any complex matter, to get the desired solution, because the solution is limited by imperfect information, time and costs, limited thinking and psychological stress experienced by decision makers.

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