Rational inattention, misallocation, and the aggregate economy

• 成果类型: Article
• 署名作者: Gondhi, Naveen
• 署名单位: INSEAD Business School
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2023.01.010
• 发表日期: 2023
• 页码: 50-75
• 关键词: rational inattention; learning; misallocation; aggregate uncertainty; Idiosyncratic uncertainty

摘要

study the effect of firm managers' information-processing constraints on production decisions, resource misallocation, and the aggregate economy. Managers have a finite information-processing capacity to reduce uncertainty about firm-specific and economy-wide shocks. The model implies that an increase in aggregate uncertainty leads to realloca-tion of capacity from learning about firm-specific shocks to learning about aggregate state, leading to higher misallocation of resources and lower output. In contrast, an increase in idiosyncratic uncertainty (through an opposite mechanism) has a non-monotonic effect on aggregate productivity. The model produces new implications regarding the co-movement of inputs and Labor-TFP sensitivity which I confirm empirically.(c) 2023 Elsevier B.V. All rights reserved.