Shocks, learning, and persistence
Abstract: A simple model of the process of learning in a diverse economy is presented. This model produces a stylized business cycle with shocks which precipitate the learning process. All agents have the same information, which implies that this business cycle cannot be reduced by improved information flow, counter to many models of output and employment fluctuation.
File(s): File format is application/pdf http://www.minneapolisfed.org/research/common/pub_detail.cfm?pb_autonum_id=331
Provider: Federal Reserve Bank of Minneapolis
Part of Series: Staff Report
Publication Date: 1980