%0 Journal Article %1 sims2003implications %A Sims, Christopher A. %D 2003 %J Journal of Monetary Economics %K rational_inattention %N 3 %P 665 - 690 %R 10.1016/S0304-3932(03)00029-1 %T Implications of rational inattention %U http://www.sciencedirect.com/science/article/pii/S0304393203000291 %V 50 %X A constraint that actions can depend on observations only through a communication channel with finite Shannon capacity is shown to be able to play a role very similar to that of a signal extraction problem or an adjustment cost in standard control problems. The resulting theory looks enough like familiar dynamic rational expectations theories to suggest that it might be useful and practical, while the implications for policy are different enough to be interesting.

@article{sims2003implications, abstract = {A constraint that actions can depend on observations only through a communication channel with finite Shannon capacity is shown to be able to play a role very similar to that of a signal extraction problem or an adjustment cost in standard control problems. The resulting theory looks enough like familiar dynamic rational expectations theories to suggest that it might be useful and practical, while the implications for policy are different enough to be interesting. }, added-at = {2013-06-26T13:38:12.000+0200}, author = {Sims, Christopher A.}, biburl = {https://www.bibsonomy.org/bibtex/21dcbdbfc69d97ccd1f951d9866d0eea7/jp}, description = {Implications of rational inattention}, doi = {10.1016/S0304-3932(03)00029-1}, interhash = {be6058a22179397673392ed9e958a1a9}, intrahash = {1dcbdbfc69d97ccd1f951d9866d0eea7}, issn = {0304-3932}, journal = {Journal of Monetary Economics }, keywords = {rational_inattention}, note = {Swiss National Bank/Study Center Gerzensee Conference on Monetary Policy under Incomplete Information }, number = 3, pages = {665 - 690}, timestamp = {2013-06-26T13:38:13.000+0200}, title = {Implications of rational inattention }, url = {http://www.sciencedirect.com/science/article/pii/S0304393203000291}, volume = 50, year = 2003 }