Authors
Robert Calvert Jump, Paul Levine
Publication date
2019/3/1
Journal
Journal of Macroeconomics
Volume
59
Pages
59-77
Publisher
North-Holland
Description
This paper provides a bird’s eye view of the behavioural New Keynesian literature. We discuss three key empirical regularities in macroeconomic data which are not accounted for by the standard New Keynesian model, namely, excess kurtosis, stochastic volatility, and departures from rational expectations. We then present a simple behavioural New Keynesian model that accounts for these empirical regularities in a straightforward manner. We discuss elaborations and extensions of the basic model, and suggest areas for future research.
Total citations
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Scholar articles
RC Jump, P Levine - Journal of Macroeconomics, 2019