01815cas a2200253 a 4500 AALejournalIMF013249 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475519242 1018-5941 BD-DhAAL BD-DhAAL Coibion, Olivier. Information Rigidity and the Expectations Formation Process : A Simple Framework and New Facts / Olivier Coibion, Yuriy Gorodnichenko. Washington, D.C. : International Monetary Fund, 2012. 1 online resource (55 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We propose a new approach to test the full-information rational expectations hypothesis which can identify whether rejections of the arise from information rigidities. This approach quantifies the economic significance of departures from the and the underlying degree of information rigidity. Applying this approach to U.S. and international data of professional forecasters and other agents yields pervasive evidence consistent with the presence of information rigidities. These results therefore provide a set of stylized facts which can be used to calibrate imperfect information models. Finally, we document evidence of state-dependence in the expectations formation process. Mode of access: Internet Gorodnichenko, Yuriy. IMF Working Papers; Working Paper ; No. 2012/296 Full text available on IMF http://elibrary.imf.org/view/journals/001/2012/296/001.2012.issue-296-en.xml IMF e-Library