Experimental Evidence for Heterogeneous Expectations in a Simple New Keynesian Framework

This paper is a two-dimensional analysis of agent behavior in a standard New Keynesian (NK) Macroeconomic model. On the dimension of pure mathematics, we analyze the parameters of the NK model and of possible prediction rules. On the other dimension we continue a practice of empirical study of heterogeneous expectations with an experiment. The experiment will ask participants to make predictions of future output and inflation. Their responses will create a data-set upon which analysis will be performed to illuminate and corroborate current theories of economic decision making. The literature has shown that most agents\u27 forecasting rules can be modeled by basic linear formulae. We conclude that some subject\u27s predictions are consistent with recursively updating coefficient models, while others still use more inscrutable methods. Despite this, and regardless of which model fit them best, the subjects\u27 errors were all of similar magnitudes

The Grizzly, September 26, 2013

Courtyard Pilot Program Extended • Much Ado About UC Drama • Extern Program • Marks Discusses Online Education • Live Music at Reimert • Community Yard Sale This Weekend • New Film Professor Joins the Campus • Enactus Prepares for a New Year • Opinion: Make the Most of Your Ursinus Years; School Spirit Should Extend Beyond Campus • Senior Spotlight: Jenna Stover • Topic of Injuries Overshadowing Football Season • Family Day Rounduphttps://digitalcommons.ursinus.edu/grizzlynews/1887/thumbnail.jp

The Lantern, 2010-2011

• The Graterford Department of Corrections • Visiting Room: Lewis Considers the Space & Time Continuum • String • The Tale of Lad Wadley • The Devout • One Moment in the Garden • Water, Focused and Tumbling • Bomber • Another • I Walked Home • Perhe • I Describe the Last Time My Parents Had Sex • Butterflies • Ship Without Fools • The Interview • Cyane • An Imaginary Portrait of Stella as a Young Girl • At the Farm Market in Early Autumn • Victor Jorgenson\u27s Photograph of the V-J Day Kiss • Lightning • The Citadel • Whenever You Come Home From School • It Came in a Dream • What I Know About Fission • Please Don\u27t Fire Me for Saying Such Things • Femina Irata • Thank You For Shopping • Sunday, November 27th • An Introduction to The Lifestyle • Laid-Off Perception • Good-Night, Sweet Prince • Requiem for a Marriage • Gertrude\u27s Book • Passing • Elk Run II • Shady Tides • A Quiet House • Tell Him. A Manual • Silence • Google This • The Dinner Table Dance • The Inevitable Extinction of Filing Cabinets • Chateau d\u27If • Man Smoking in Charcoal • Inside Auschwitz • Bark Glow • Anticipation • Look Up • Major News Networks • Others Wage War • Insert Bible Verse Here • The Empress • Candy Castle • Venice, Italy • Quebec • Bhutanese Child • Jumper • Pomegranates • Cover Image: Octopus Hathttps://digitalcommons.ursinus.edu/lantern/1176/thumbnail.jp