Optimally Imprecise Memory and Biased Forecasts
Speaker: Michael Woodford (Columbia) Title: Optimally Imprecise Memory and Biased Forecasts Abstract: We propose a model of optimal decision making subject to a memory constraint. The constraint is a limit on the complexity of memory measured using Shannon’s mutual information, as in models of rational inattention; the structure of the imprecise memory is optimized (for a given decision problem and […]
Growth and zero sets of eigenfunctions and of solutions to elliptic partial differential equations
From February 25 to March 1, the CMSA will be hosting a workshop on Growth and zero sets of eigenfunctions and of solutions to elliptic partial differential equations. Key participants of this workshop include David Jerison (MIT), Alexander Logunov (IAS), and Eugenia Malinnikova (IAS). This workshop will have morning sessions on Monday-Friday of this week from […]
Sentiment and Speculation in a Market with Heterogeneous Beliefs
Speaker: Ian Martin (LSE) Title: Sentiment and Speculation in a Market with Heterogeneous Beliefs Abstract: We present a dynamic model featuring risk-averse investors with heterogeneous beliefs. Individual investors have stable beliefs and risk aversion, but agents who were correct in hindsight become relatively wealthy; their beliefs are overrepresented in market sentiment, so “the market” is bullish following good news and […]