Myopia and Anchoring

• 成果类型: Article
• 署名作者: Angeletos, George-Marios; Huo, Zhen
• 署名单位: Massachusetts Institute of Technology (MIT); Yale University
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20191436
• 发表日期: 2021
• 页码: 1166-1200
• 关键词: sticky-information; monetary-policy; social value; expectations; consumption; DYNAMICS; prices; MODEL; rise

摘要

We develop an equivalence between the equilibrium effects of incomplete information and those of two behavioral distortions: myopia, or extra discounting of the future; and anchoring of current behavior to past behavior, as in models with habit persistence or adjustment costs. We show how these distortions depend on higher-order beliefs and GE mechanisms, and how they can be disciplined by evidence on expectations. We finally illustrate the use of our toolbox with a quantitative application in the context of inflation, a bridge to the HANK literature, and an extension to networks.