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573. A Framework for the Analysis of Self-Confirming Policies

by P. Battigalli, S. Cerreia-Vioglio, F. Maccheroni, M. Marinacci, T. Sargent

This paper provides a general framework for the analysis of self-confirming policies. We frst study self-conirming equilibria in recurrent decision problems with incomplete information about the true stochastic model. Next we illustrate the theory with a characterization of stationary monetary policies in a linear-quadratic setting. 

Key words: Self-confirming equilibrium, partial identification, monetary policy


Last updated November 29, 2017