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- W2043940637 abstract "I give an explanation for why agents react with a delay to decision and expectation parameters, by showing that imperfect agents must adjust very slowly relative to optimally adjusting agents if they begin reacting as soon as the latter agents would react. The results follow from the hypothesis of imperfect choice alone irrespective of whether there are any information, search, transaction, or other costs of adjusting decisions. The results thereby provide a general reason for observing inertially lagged behavior, and also agree with recent asset market experiments whose dynamics are governed by adaptive rather than ‘rational’ expectations." @default.
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- W2043940637 date "1988-10-01" @default.
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- W2043940637 title "The necessity of delaying economic adjustment" @default.
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- W2043940637 doi "https://doi.org/10.1016/0167-2681(88)90051-0" @default.
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