scholarly journals Optimal Sticky Prices Under Rational Inattention

2019 ◽  
Vol 52 (4) ◽  
pp. 573-617
Author(s):  
Bartosz Maćkowiak ◽  
Mirko Wiederholt
Keyword(s):  
Jel Classification ◽  
Special Importance ◽  
Rational Inattention ◽  
Absolute Size ◽  
Real Effects ◽  
Idiosyncratic Shocks ◽  
The Business Cycle ◽  
The Many ◽  
Many Sources ◽  
Nominal Shocks

Abstract This paper presents a model in which price setting firms decide what to pay attention to, subject to a constraint on information flow. When idiosyncratic conditions are more variable or more important than aggregate conditions, firms pay more attention to idiosyncratic conditions than to aggregate conditions. When we calibrate the model to match the large average absolute size of price changes observed in micro data, prices react fast and by large amounts to idiosyncratic shocks, but only slowly and by small amounts to nominal shocks. Nominal shocks have strong and persistent real effects. An optimizing trader will process those prices of most importance to his decision problem most frequently and carefully, those of less importance less so, and most prices not at all. Of the many sources of risk of importance to him, the business cycle and aggregate behavior generally is, for most agents, of no special importance, and there is no reason for traders to specialize their own information systems for diagnosing general movements correctly. – Robert E. Lucas (1977, 21) JEL Classification: D21, D83, E31, E52

scholarly journals Optimal Sticky Prices under Rational Inattention

2009 ◽  
Vol 99 (3) ◽  
pp. 769-803 ◽  
Author(s):  
Bartosz Maćkowiak ◽  
Mirko Wiederholt
Keyword(s):  
Information Flow ◽  
Sticky Prices ◽  
Price Setting ◽  
Micro Data ◽  
Rational Inattention ◽  
Absolute Size ◽  
Price Changes ◽  
Real Effects ◽  
Idiosyncratic Shocks ◽  
Nominal Shocks

This paper presents a model in which price setting firms decide what to pay attention to, subject to a constraint on information flow. When idiosyncratic conditions are more variable or more important than aggregate conditions, firms pay more attention to idiosyncratic conditions than to aggregate conditions. When we calibrate the model to match the large average absolute size of price changes observed in micro data, prices react fast and by large amounts to idiosyncratic shocks, but only slowly and by small amounts to nominal shocks. Nominal shocks have strong and persistent real effects. (JEL D21, D83, E31, E52)

scholarly journals Children’s ability to edit their memories when learning about the environment from credible and noncredible websites

2021 ◽  
Vol 6 (1) ◽  
Author(s):  
Kim P. Roberts ◽  
Katherine R. Wood ◽  
Breanne E. Wylie
Keyword(s):  
Environmental Sustainability ◽  
Choice Test ◽  
Multiple Choice Test ◽  
Sources Of Information ◽  
Older Children ◽  
Inaccurate Information ◽  
The Many ◽  
The Individual ◽  
Many Sources ◽  
Website Content

AbstractOne of the many sources of information easily available to children is the internet and the millions of websites providing accurate, and sometimes inaccurate, information. In the current investigation, we examined children’s ability to use credibility information about websites when learning about environmental sustainability. In two studies, children studied two different websites and were tested on what they had learned a week later using a multiple-choice test containing both website items and new distracters. Children were given either no information about the websites or were told that one of the websites (the noncredible website) contained errors and they should not use any information from that website to answer the test. In both studies, children aged 7- to 9-years reported information from the noncredible website even when instructed not to, whereas the 10- to 12-year-olds used the credibility warning to ‘edit out’ information that they had learned from the noncredible website. In Study 2, there was an indication that the older children spontaneously assessed the credibility of the website if credibility markers were made explicit. A plausible explanation is that, although children remembered information from the websites, they needed explicit instruction to bind the website content with the relevant source (the individual websites). The results have implications for children’s learning in an open-access, digital age where information comes from many sources, credible and noncredible. Education in credibility evaluation may enable children to be critical consumers of information thereby resisting misinformation provided through public sources.

scholarly journals A new noise detected in the ocean

2007 ◽  
Vol 87 (5) ◽  
pp. 1255-1256 ◽  
Author(s):  
Angel Guerra ◽  
Xavier Martinell ◽  
Angel F. González ◽  
Michael Vecchione ◽  
Joaquin Gracia ◽  
...  
Keyword(s):  
Ambient Noise ◽  
Sound Production ◽  
Biological Activities ◽  
Physical Processes ◽  
Defensive Strategy ◽  
Reflection And Refraction ◽  
Turbulent Pressure ◽  
In The Wild ◽  
The Many ◽  
Many Sources

Many observers have noted that the sea is full of loud sounds, both ongoing and episodic. Among the many sources of natural ambient noise are wave action, physical processes such as undersea earthquakes, and biological activities of shrimps, fish, dolphins and whales. Despite interest by acoustics experts, sound production by cephalopods has been reported only twice, both involving squid. The ‘faint poppings’ produced were thought to result from fluttering of the thin external lips of the squid's funnel while water is being expelled through it. Otherwise, no information is available on cephalopod sounds. Here we present a noise produced by a stressed common octopus. The event was filmed and recorded in the wild. The hypothesis we offer to explain how this sound was produced is cavitation, which has been documented in several biological systems. In our case, the water expelled through the funnel may have created a jet with a velocity so high that the turbulent pressure dropped locally below the vapour pressure of the water. Seawater contains gas microbubbles, which will grow in size when they are entrained in the region of low pressure. Subsequently, the bubbles collapse violently when pressure rises again. The sound produced by the octopus is like a gunshot, and distinct lights observed at the same time contradict the existence of a simple pressure wave and point to the possible presence of gas-bubbles, which would change the light intensity by reflection and refraction of the sunlight. This behaviour seems to be a defensive strategy to escape from vibration-sensitive predators.

scholarly journals Asymmetric effects of monetary policy in Brazil

2009 ◽  
Vol 39 (2) ◽  
pp. 277-300 ◽  
Author(s):  
Edilean Kleber da Silva Bejarano Aragón ◽  
Marcelo Savino Portugal
Keyword(s):  
Monetary Policy ◽  
Monetary Shocks ◽  
Monetary Policies ◽  
The Real ◽  
Asymmetric Effects ◽  
Real Effects ◽  
Markov Switching Models ◽  
Switching Models ◽  
The Business Cycle ◽  
Negative Shock

In this paper, we check whether the effects of monetary policy actions on output in Brazil are asymmetric. Therefore, we estimate Markov-switching models that allow positive and negative shocks to affect the growth rate of output in an asymmetric fashion in expansion and recession states. In general, results show that: i) the real effects of negative monetary shocks are larger than those of positive shocks in an expansion; ii) in a recession, the real effects of positive and negative shocks are the same; iii) there is no evidence of asymmetry between the effects of countercyclical monetary policies; and iv) it is not possible to assert that the effects of a positive (or negative) shock are dependent upon the phase of the business cycle.

scholarly journals The business cycle: a definition

2021 ◽  
pp. 205-262
Author(s):  
Tuur Demeester
Keyword(s):  
Business Cycle ◽  
Jel Classification ◽  
Austrian School ◽  
Methodological Framework ◽  
The Core ◽  
Palabras Clave ◽  
The Business Cycle ◽  
Necessary And Sufficient ◽  
Counter Argument

The goal of this article is to properly define the economic phenomenon of the business cycle. The text is rooted in the tradition of the Austrian School of Economics, and the methodological framework builds on concepts developed by Aristotle and Thomas Aquinas. This leads to the development of a few new methodological concepts, such as a re-interpretation of «inflation» and «deflation», and the re-introduction of «imaginary goods» as an important social phenomenon. The core observation of the article is that the business cycle is in fact a subclass of another kind of cycle, the «fraud cycle». Our conclusion is that in order to produce a business cycle, the occurrence of institutional fraud in the sphere of money and banking are both necessary and sufficient. The counter-argument that honest banking can also produce business cycles is refuted in Appendix I. We believe this article is significant in two ways: 1) it provides an unambiguous recipe for the long term extermination of the business cycle; and 2) it helps expand the scope of the Austrian School beyond economics into fields of law and morality. Key words: Business Cycle, Fraud Cycle, Austrian School, money and banking. JEL Classification: B53, B49, D01, K13. Resumen: El objetivo de este artículo es definir apropiadamente el fenómeno económico del ciclo económico. El resto está enraizado en la tradición de la Escuela Austriaca de Economía, y el marco metodológico parte de los conceptos desarrollados por Aristóteles y Tomás de Aquino. Esto conduce al desarrollo de algunos conceptos metodológicos nuevos, tales como la reinterpretación de la «inflación» y la «deflación», y la reintroducción de los «bienes imaginarios» como un fenómeno social importante. La observación central de este artículo es que el ciclo económico es de hecho una subclase de otro tipo de ciclo, el «ciclo del fraude». Nuestra conclusión es que para producir un ciclo económico, la existencia de un fraude institucional en la esfera del dinero y la banca es una condición necesaria y suficiente. El Apéndice I refuta el contra-argumento de que una banca honesta también puede producir ciclos económicos. Creemos que este artículo es significativo por dos motivos: 1) ofrece una receta clara para la eliminación del ciclo económico; y 2) ayuda a expandir el ámbito de la Escuela Austriaca más allá del campo de la Economía hacia los campos del Derecho y la Moralidad. Palabras clave: Ciclo económico, ciclo del fraude, Escuela Austriaca, dinero y banca. Clasificación JEL: B53, B49, D01, K13.

scholarly journals Use of text mining techniques for unsupervised organization of digital procedural acts

2018 ◽  
Vol 25 (4) ◽  
pp. 74
Author(s):  
Alfredo Silveira Araújo Neto ◽  
Marcos Negreiros
Keyword(s):  
Data Mining ◽  
Text Mining ◽  
Text Documents ◽  
Digital Format ◽  
Large Databases ◽  
Context Data ◽  
Self Discovery ◽  
The Many ◽  
Many Sources ◽  
And Storage

The rapid advances in technologies related to the capture and storage of data in digital format have allowed to organizations the accumulation of a volume of information extremely high, constituted a higher proportion of data in unstructured format, represented by texts. However, it is noted that the retrieval of useful information from these large repositories has been a very challenging activity. In this context, data mining is presented as a self-discovery process that acts on large databases and enables the knowledge extraction from raw text documents. Among the many sources of textual documents are electronic diaries of justice, which are intended to make public officially all the acts of the Judiciary. Despite the publication in digital form has provided improvements represented by the removal of imperfections related to divulgation at printed format, it is observed that the application of data mining methods could render more rapid analysis of its contents. In this sense, this article establishes a tool capable of automatically grouping and categorizing digital procedural acts, based on the evaluation of text mining techniques applied to groups determination activity. In addition, the strategy of defining the descriptors of the groups, that is usually conducted based on the most frequent words in the documents, was evaluated and remodeled in order to use, instead of words, the most regularly identified concepts in the texts.

The reproduction and larval development of Nereis fucata (Savigny)

1959 ◽  
Vol 38 (1) ◽  
pp. 65-80 ◽  
Author(s):  
J. B. Brown-Gilpin
Keyword(s):  
Life History ◽  
Life Cycle ◽  
Experimental Methods ◽  
Point Of View ◽  
Hermit Crabs ◽  
Special Importance ◽  
Reproductive Patterns ◽  
Complete Life Cycle ◽  
History Of ◽  
The Many

The wide variety of reproductive patterns and behaviour in the many species of Nereidae already studied clearly justifies further research. But the life history of Nereis fucata (Savigny) is not only of interest from the comparative point of view. Its commensal habit (it occurs within shells occupied by hermit crabs) immediately gives it a special importance. This alone warrants a detailed study, particularly as no commensal polychaete has yet been reared through to metamorphosis and settlement on its host (Davenport, 1955; Davenport & Hickok, 1957). The numerous interesting problems which arise, and the experimental methods needed to study them, are, however, beyond the range of a paper on nereid development. It is therefore proposed to confine the present account to the reproduction and development up to the time when the larvae settle on the bottom. The complete life cycle, the mechanism of host-adoption, and related topics, will be reported in later papers.

Official publications and the art librarian

1982 ◽  
Vol 7 (1) ◽  
pp. 17-26
Author(s):  
Valerie J. Bradfield
Keyword(s):  
British Government ◽  
Future Developments ◽  
Wide Range ◽  
The Many ◽  
Many Sources

There is a wide range of publications available from the British Government which may be of interest to art librarians, and this article provides an outline, and a guide to the many sources for tracing and obtaining them. It goes on to indicate recent changes in the patterns of official publishing, and likely future developments in the eighties.

scholarly journals On the Consideration of the many sources of Variability

2006 ◽  
Vol 163 (suppl_11) ◽  
pp. S189-S189
Author(s):  
M.J Nicolich
Keyword(s):  
The Many ◽  
Many Sources

scholarly journals Firm Uncertainty Cycles and the Propagation of Nominal Shocks

2019 ◽  
Vol 11 (1) ◽  
pp. 276-337 ◽  
Author(s):  
Isaac Baley ◽  
Andrés Blanco
Keyword(s):  
Adjustment Costs ◽  
Individual Characteristics ◽  
Cross Sectional ◽  
Real Effects ◽  
Learning Speed ◽  
Pricing Behavior ◽  
Nominal Shocks ◽  
The Impact ◽  
Idiosyncratic Uncertainty ◽  
Low Uncertainty

We develop a framework to study the impact of idiosyncratic uncertainty on aggregate economic outcomes. Agents learn about individual characteristics, which receive infrequent, large, and persistent shocks. In this environment, idiosyncratic uncertainty moves in cycles, fluctuating between periods of high and low uncertainty; with additional fixed adjustment costs, the frequency and size of agents' actions also fluctuate in cycles. We apply our framework to study pricing behavior and the propagation of nominal shocks. We show, analytically and quantitatively, that idiosyncratic uncertainty cycles amplify the real effects of nominal shocks by generating cross-sectional dispersion in firms' adjustment frequency and in learning speed. (JEL D21, D81, D83, E31, E32, E52)

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