Abstract
We analyze how a benevolent, privately informed government agency would optimally release information about the economy's growth rate when the agents hold heterogeneous beliefs. We model two types of agent: "conforming" and "dissenting." The former has a prior that is identical to that of the government agency, whereas the latter has a prior that differs from that of the government agency. We identify both informative and uninformative equilibria. Informative equilibria are equilibria in which the government agency's equilibrium signal leads to a revision of beliefs. We demonstrate that the uninformative equilibria can in fact dominate the informative ones in terms of ex post social welfare.
Originalsprog | Engelsk |
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Tidsskrift | European Economic Review |
Vol/bind | 70 |
Sider (fra-til) | 108-125 |
Antal sider | 18 |
ISSN | 0014-2921 |
DOI | |
Status | Udgivet - okt. 2014 |
Udgivet eksternt | Ja |