search query: @author Diebold, F. / total: 5
reference: 4 / 5
| Author: | Bomfim, A. Diebold, F. |
| Title: | Bounded rationality and strategic complementarity in a macroeconomic model: policy effects, persistence and multipliers |
| Journal: | Economic Journal
1997 : SEP, VOL. 107:444, p. 1358-1374 |
| Index terms: | STRATEGY MODELS POLICY |
| Language: | eng |
| Abstract: | Motivated by recent developments in the bounded rationality and strategic complementarity literatures, the authors examine an intentionally simple and stylised aggregative economic model, when the assumptions of fully rational expectations and no strategic interactions are relaxed. The authors show that small derivations from rational expectations, taken alone, lead only to small derivations from classical policy-ineffectiveness, but that the situation can change dramatically when strategic complementarity is introduced. |
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