Macro/finance models often assume one representative agent with rational expectations. However a growing literature shows that relaxing this assumption leads to very different policy implications. These new approaches lead to new reasons for inequalities of income, wealth and welfare. A unified framework which studies consequences for inequality of policymaking, by modelling agent-diversity of expectations has not yet been undertaken.
This proposal addresses the gap by augmenting standard micro-founded DSGEs with agent-based expectation mechanisms. The goal is to highlight new policy guidelines taking into account also relevant policy impact on inequality.
This opportunity will remain open until a suitable candidate has been found.
To apply please click here
Open to students worldwide
There is no specific funding for this project, however, the successful candidate will be able to apply for funding offered by the Management School.