Social Science Plaza / University of Otago / University of Auckland / University of California / / /
IndustryTerm
rational expectations solution / technology shocks / linear perceived law / constantgain learning algorithm / perceived law / model solution / bank / minimum state variable solution / /
Organization
University of Otago / Department of Economics / University of California / Irvine / BUSINESS CYCLE FABIO MILANI University / University of Auckland / Reserve Bank of New Zealand / / /
Position
Rt / precision matrix Rt / perceived model of the economy / /
EXPECTATIONS SHOCKS AND LEARNING AS DRIVERS OF THE BUSINESS CYCLE FABIO MILANI University of California, Irvine Abstract. Psychological factors, market sentiments, and shifts in beliefs are believed by many to play a non