Department of Economics and Business - Universitat Pompeu Fabra

Title:: Bayesian learning
Authors:: Isaac Baley and Laura Veldkamp
Date:: July 2021
Abstract:: We survey work using Bayesian learning in macroeconomics, highlighting common themes and new directions. First, we present many of the common types of learning problems agents face-signal extraction problems-and trace out their effects on macro aggregates, in different strategic settings. Then we review different perspectives on how agents get their information. Models differ in their motives for information acquisition and the cost of information, or learning technology. Finally, we survey the growing literature on the data economy, where economic activity generates data and the information in data feeds back to affect economic activity
Keywords:: Bayes’ law, passive learning, active learning, signal extraction, information choice, sticky information, rational inattention, experimentation, data economy, coordination games.
JEL codes:: D80, D81, D83, D84, E20, E30
Area of Research:: Macroeconomics and International Economics

Download the paper in PDF format (503 Kb)

Search Working Papers

By Author:
-enter one surname only or surname and first name separated by a comma and in this order-

By Date:
-when used a value in each of the four fields must be selected-
from (month) from (year) to (month) to (year)

By Keywords:
-separate each keyword or group of keywords by commas-

By JEL code(s):
-separate each code by commas-

By Area:

Predefined Queries