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Learning to be rational in the presence of news: A lab investigation

2025· article· en· W4406368152 on OpenAlex

Why this work is in the frame

A frame that forgets how it found something cannot be audited. These are the routes that admitted this work.

affAt least one author lists a Canadian institution in the pinned OpenAlex snapshot.
fundA Canadian funder is recorded on the work.

Bibliographic record

VenueEuropean Economic Review · 2025
Typearticle
Languageen
FieldSocial Sciences
TopicInnovations in Educational Methods
Canadian institutionsUniversity of Ottawa
FundersDeutsche BundesbankCanada Research Chairs
KeywordsEconomicsRational expectationsNeoclassical economicsPositive economicsMathematical economicsKeynesian economics

Abstract

fetched live from OpenAlex

We conduct a laboratory experiment in a micro-founded macroeconomic model where participants receive public announcements about future government spending shocks, and are tasked with repeatedly forecasting output over a given horizon. By eliciting several-period-ahead predictions, we can investigate forecast revisions in relation to these announcements. We find that subjects learn the magnitude of the effect of the shocks on output, albeit not with perfect accuracy. We find micro-level evidence that they persistently underreact to the announcements in a way consistent with sticky information, but find little support for fully backward-looking expectations. We rationalize the experimental data with a Bayesian updating model, which provides a particularly good description of the behaviors in longer-horizon environments and among attentive, experienced, and effortful subjects.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.

Full frame distilled prediction

Teacher imitation

Not calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.

metaresearch head score (Codex)0.006
metaresearch head score (Gemma)0.003
Version: codex-gemma-dda1882f352aValidation status: machine_predicted_unvalidated
Candidate categoriesnone
Consensus categoriesnone
DomainCandidate signal: none · Consensus signal: none
Study designCandidate signal: Not applicable · Consensus signal: none
GenreCandidate signal: Empirical · Consensus signal: none
Teacher disagreement score0.908
Threshold uncertainty score0.418

Codex and Gemma teacher scores by category

CategoryCodexGemma
Metaresearch0.0060.003
Meta-epidemiology (narrow)0.0000.000
Meta-epidemiology (broad)0.0000.000
Bibliometrics0.0000.000
Science and technology studies0.0000.000
Scholarly communication0.0000.000
Open science0.0000.000
Research integrity0.0000.000
Insufficient payload (model declined to judge)0.0000.000

Machine scores (provisional)

The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.

Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.

Opus teacher head0.095
GPT teacher head0.413
Teacher spread0.318 · how far apart the two teachers sit on this one work
Validation statusscore_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it