Elastic attention, risk sharing, and international comovements

doi:10.1016/jjedc.2017.03.009

CORC > 上海财经大学 > 上海财经大学

	Elastic attention, risk sharing, and international comovements
	Li, Wei 1; Luo, Yulei 2; Nie, Jun 3
刊名	JOURNAL OF ECONOMIC DYNAMICS & CONTROL
	2017-06
卷号	79 页码:1-20
关键词	Rational inattention Elastic capacity Risk sharing International consumption correlations
ISSN号	0165-1889
DOI	10.1016/jjedc.2017.03.009
英文摘要	In this paper we examine the effects of elastic information-processing capacity (or elastic attention) proposed in Sims (2010) on international consumption and income correlations in a tractable small open economy (SOE) model with exogenous income processes. We find that in the presence of capital mobility in financial markets, elastic attention due to a fixed information-processing cost lowers the international consumption correlations by generating heterogeneous consumption adjustments to income shocks across countries facing different macroeconomic uncertainty. In addition, we show that elastic attention can improve the model's predictions for the other key moments of the joint dynamics of consumption and income. (C) 2017 Elsevier B.V. All rights reserved.
WOS研究方向	Business & Economics
语种	英语
出版者	ELSEVIER SCIENCE BV
WOS记录号	WOS:000402492900001
内容类型	期刊论文
源URL	[http://10.2.47.112/handle/2XS4QKH4/976]
专题	上海财经大学
通讯作者	Luo, Yulei
作者单位	1.Shanghai Univ Finance & Econ, Sch Int Business Adm, Shanghai, Peoples R China; 2.Univ Hong Kong, Fac Business & Econ, Hong Kong, Hong Kong, Peoples R China; 3.Fed Reserve Bank Kansas City, Econ Res Dept, Kansas City, MO USA
推荐引用方式 GB/T 7714	Li, Wei,Luo, Yulei,Nie, Jun. Elastic attention, risk sharing, and international comovements[J]. JOURNAL OF ECONOMIC DYNAMICS & CONTROL,2017,79:1-20.
APA	Li, Wei,Luo, Yulei,&Nie, Jun.(2017).Elastic attention, risk sharing, and international comovements.JOURNAL OF ECONOMIC DYNAMICS & CONTROL,79,1-20.
MLA	Li, Wei,et al."Elastic attention, risk sharing, and international comovements".JOURNAL OF ECONOMIC DYNAMICS & CONTROL 79(2017):1-20.