scholarly journals A Likelihood Analysis of Models with Information Frictions

2009 ◽  
Author(s):  
Leonardo Melosi
Keyword(s):  
Information Frictions ◽  
Likelihood Analysis

scholarly journals Estimating Models with Dispersed Information

2014 ◽  
Vol 6 (1) ◽  
pp. 1-31 ◽  
Author(s):  
Leonardo Melosi
Keyword(s):  
Common Knowledge ◽  
Dsge Model ◽  
Information Frictions ◽  
Price Stickiness ◽  
Price Changes ◽  
Likelihood Analysis ◽  
Dispersed Information ◽  
Nominal Shocks ◽  
Idiosyncratic Uncertainty

We conduct likelihood evaluation of a DSGE model in which firms have imperfect common knowledge. Imperfect common knowledge is found to be more successful than price stickiness à la Calvo to account for the highly persistent effects of nominal shocks on output and inflation. Our likelihood analysis suggests that firms pay little attention to aggregate nominal conditions. This paper shows that such allocation of attention is plausible because it is optimal for firms with a reasonably small size of information frictions and a size of idiosyncratic uncertainty that is in line with the micro evidence on price changes. (JEL C51, D83, E13, E23, E31)

Acquiring Innovation Under Information Frictions

2019 ◽  
Author(s):  
Murat Alp Celik ◽  
Xu Tian ◽  
Wenyu Wang
Keyword(s):  
Information Frictions

Dynamic Trade Finance in the Presence of Information Frictions and FinTech

2020 ◽  
Author(s):  
Hau L. Lee ◽  
Christopher S. Tang ◽  
S. Alex Yang ◽  
Yuxuan Zhang
Keyword(s):  
Information Frictions ◽  
Trade Finance
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