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• W4298140861 abstract "We estimate a behavioral New Keynesian (NK) model in which households and firms plan over a finite horizon. The finite-horizon planning (FHP) model outperforms rational expectations versions of the NK model as well as other behavioral NK models. In the FHP model, households and firms are forward-looking in thinking about events over their planning horizon but are backward-looking regarding events beyond that point. This gives rise to substantial aggregate persistence without resorting to additional features such as habit persistence and price contracts indexed to lagged inflation. (JEL E12, E23, E31, E32, E52)" @default.
• W4298140861 created "2022-10-01" @default.
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• W4298140861 date "2022-10-01" @default.
• W4298140861 modified "2023-10-16" @default.
• W4298140861 title "Short-Term Planning, Monetary Policy, and Macroeconomic Persistence" @default.
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• W4298140861 doi "https://doi.org/10.1257/mac.20200058" @default.
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