Errors in probabilistic reasoning have been the focus of much psychology research and are
among the original topics of modern behavioral economics. This chapter reviews theory and …

Financial crises have large deleterious effects on economic activity, and as such have been
the focus of a large body of research. This study surveys the existing literature on financial …

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

We study the rationality of individual and consensus forecasts of macroeconomic and
financial variables using the methodology of Coibion and Gorodnichenko (2015), who …

An increase in the household debt to GDP ratio predicts lower GDP growth and higher
unemployment in the medium run for an unbalanced panel of 30 countries from 1960 to …

This paper argues for a careful (re) consideration of the expectations formation process and
a more systematic inclusion of real-time expectations through survey data in macroeconomic …

This paper analyzes how bounded rationality affects monetary and fiscal policy via an
empirically relevant enrichment of the New Keynesian model. It models agents' partial …

ABSTRACT We revisit La Porta's finding that returns on stocks with the most optimistic
analyst long‐term earnings growth forecasts are lower than those on stocks with the most …

What is the role of the financial sector in explaining business cycles? This question is as old
as the field of macroeconomics, and an extensive body of research conducted since the …

A successful low-carbon transition requires the introduction of policies aimed at aligning
investments to the climate and sustainability targets. In this regard, a global Carbon Tax (CT) …