We review the recent literature on rational inattention, identify the main theoretical
mechanisms, and explain how it helps us understand a variety of phenomena across fields …

Inattention is a central, unifying theme for much of behavioral economics. It permeates such
disparate fields as microeconomics, macroeconomics, finance, public economics, and …

This paper surveys the research in the past decade on imperfect information models of
aggregate supply and the Phillips curve. This new work has emphasized that information is …

Abstract We survey New Zealand firms and document novel facts about their
macroeconomic beliefs. There is widespread dispersion in beliefs about past and future …

This paper presents a model in which price setting firms decide what to pay attention to,
subject to a constraint on information flow. When idiosyncratic conditions are more variable …

This paper presents a model of business cycles driven by shocks to consumer expectations
regarding aggregate productivity. Agents are hit by heterogeneous productivity shocks, they …

Using the ECB Survey of Professional Forecasters to characterize expectations at the micro-
level, we emphasize two new facts: forecasters (i) fail to systematically update their forecasts …

We provide testable conditions under which the cost of acquiring information is given by the
expected reduction of a measure of uncertainty (eg, entropy). The assumption, under the …

An authoritative graduate textbook on information choice, an exciting frontier of research in
economics and finance Most theories in economics and finance predict what people will do …

We study daily money market mutual fund flows at the individual share class level during
September 2008. This fine granularity of data allows new insights into investor and portfolio …