Optimal Inattentive Length in Macroeconomic Models
7 Pages Posted: 17 Apr 2014
Date Written: March 1, 2006
This paper proposes an approximate solution of firm's optimal inattentive length in a standard macroeconomic model. The approximate solution conceptually fits a sticky-information model better, and predicts empirically more plausible inattentive length than the one proposed by Reis (2006).
Keywords: inattentiveness; sticky information; asymmetric information; approximate solution
JEL Classification: E31; E39
Suggested Citation: Suggested Citation