PROJECT DESCRIPTION

Project description

Analytical frameworks

The project aims to analyze the effects of

• macroeconomic policies, both monetary and fiscal,
• regulations related to information disclosure, and
• introduction of financial instruments

within analytical frameworks that are based on more realistic behavioral foundations.

We will conduct research both at the individual and collective levels by combining

• laboratory experiments,
• computational experiments, and
• mathematical modeling,

while paying a close attention to

• how individual decisions are aggregated into collective outcomes
• how collective outcomes feedback into individual decisions.

We employ laboratory experiment in our project because although expectation plays the central role in the modern macroeconomics and financial economics, how humans form or adjust their expectations is not yet very well understood.

And direct elicitations of beliefs / expectations are possible only under controlled experiments.