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- W4313888312 abstract "This paper solves a dynamic rational inattention problem by formulating it in the frequency domain. The main result is a rational inattention version of the classical Wiener-Kolmogorov filter. This filter permits an infinite-dimensional state vector, provides a new line of attack for obtaining closed-form solutions, and can be implemented numerically using a simple iterative algorithm. The frequency-domain approach also sheds new light on why rational inattention produces forward-looking behavior: inattentive agents are willing to accept more uncertainty about the timing of disturbances in exchange for less uncertainty about fluctuations at the most important frequencies." @default.
- W4313888312 created "2023-01-10" @default.
- W4313888312 creator A5058507263 @default.
- W4313888312 date "2023-03-01" @default.
- W4313888312 modified "2023-10-18" @default.
- W4313888312 title "Rational inattention in the frequency domain" @default.
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- W4313888312 doi "https://doi.org/10.1016/j.jet.2022.105604" @default.
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