hero working papers

A Framework for the Analysis of Self-Confirming Policies

Number: 573
Year: 2016
Author(s): P. Battigalli, S. Cerreia-Vioglio, F. Maccheroni, M. Marinacci, T. Sargent
This paper provides a general framework for analyzing self-confirming policies. We study self-confirming equilibria in recurrent decision problems with incomplete information about the true stochastic model. We characterize stationary monetary policies in a linear-quadratic setting.

Keywords: Self-confirming equilibrium, partial identification, monetary policy