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Data · dataset · 2008

Replication data for: Inattentive Producers

Listed in Harvard Dataverse

I present and solve the problem of a producer who faces costs of acquiring, absorbing, and processing information.

Description

I establish a series of theoretical results describing the producer's behavior. First, I find the conditions under which she prefers to set a plan for the price she charges, or instead prefers to set a plan for the quantity she sells.

Second, I show that the agent rationally chooses to be inattentive to news, only sporadically updating her information. I solve for the optimal length of inattentiveness and characterize its determinants. Third, I explicitly aggregate the behavior of many such producers.

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I apply these results to a model of inflation. I find that the model can fit the quantitative facts on post-war inflation remarkably well, that it is a good forecaster of future inflation, and that it survives the Lucas critique by fitting also the prewar facts on inflation moderately well.

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Where it is published

Catalogue records · 1
Provenance · 1 source records, 6 field assertions
SourceKeyLast seenRaw
Harvard Dataversedoi:10.7910/DVN/5W53YT14 d agoJSON v1
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publication_datesource · Harvard Dataverseconnector:dataverse@1.0.0
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updated_datesource · Harvard Dataverseconnector:dataverse@1.0.0
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