Data and Code for: State-dependent attention and pricing decisions

Principal Investigator(s): View help for Principal Investigator(s) Javier Turen, Pontificia Universidad Catolica de Chile

Version: View help for Version V1

Name	File Type	Size	Last Modified
Calibrated_params_static.mat	application/x-matlab-data	204 bytes	06/29/2022 06:50:AM
Calibration_Inattention_Main.asv	text/x-matlab	3.5 KB	06/29/2022 06:50:AM
Calibration_Inattention_Main.m	text/x-matlab	3.6 KB	06/29/2022 06:50:AM
Calibration_Min_Algorithm.m	text/x-matlab	558 bytes	06/29/2022 06:50:AM
Calibration_inna.m	text/x-matlab	591 bytes	06/29/2022 06:50:AM
Calibrations_Common_Lambda.mat	application/x-matlab-data	3.2 KB	06/29/2022 06:50:AM
DGP.m	text/x-objcsrc	2.4 KB	06/29/2022 06:50:AM
FOC.m	text/x-matlab	3.7 KB	06/29/2022 06:50:AM
GDP.mat	application/x-matlab-data	200.5 MB	06/29/2022 06:50:AM
Inv_pdf.m	text/x-matlab	3.1 KB	06/29/2022 06:50:AM

Project Description

Summary:

This paper studies price-setting decisions under Rational Inattention. Prices are set by tracking an unobserved target whose distribution is also unknown. Information acquisition is dynamic and fully flexible since, given information acquired previously, price-setters choose the amount of information they collect as well as how they want to learn about both the outcome and its distribution. We show that by allowing for imperfect information to be the unique source of rigidity, the model can reconcile stylized facts in the microeconomic evidence on price setting while simultaneously being consistent with empirical results on state-dependent attention.

Scope of Project

JEL Classification:
      D82 Asymmetric and Private Information; Mechanism Design
      D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
      E31 Price Level; Inflation; Deflation
      E32 Business Fluctuations; Cycles

Related Publications

Download this project

Published Versions

V1 [2023-03-27]

Export Metadata

Dublin Core

DDI 2.5

Report a Problem

Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.

This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.