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Behavioural new Keynesian models

Behavioural new Keynesian models

Calvert Jump, Robert and Levine, Paul (2018) Behavioural new Keynesian models. Journal of Macroeconomics, 59. pp. 59-77. ISSN 0164-0704 (doi:https://doi.org/10.1016/j.jmacro.2018.11.002)

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Abstract

This paper provides a bird’s eye view of the behavioural New Keynesian literature. We discuss three key empirical regularities in macroeconomic data which are not accounted for by the standard New Keynesian model, namely, excess kurtosis, stochastic volatility, and departures from rational expectations. We then present a simple behavioural New Keynesian model that accounts for these empirical regularities in a straightforward manner. We discuss elaborations and extensions of the basic model, and suggest areas for future research.

Item Type: Article
Uncontrolled Keywords: behavioural macroeconomics, heterogeneous expectations, bounded rationality
Subjects: H Social Sciences > HB Economic Theory
Faculty / Department / Research Group: Faculty of Business
Faculty of Business > Institute of Political Economy, Governance, Finance and Accountability (IPEGFA)
Last Modified: 26 Sep 2019 15:18
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: None
Selected for GREAT 2019: None
URI: http://gala.gre.ac.uk/id/eprint/25265

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