Keywords: Bayes’ law, passive learning, active learning, signal extraction, information choice, sticky information, rational inattention, experimentation, data economy, coordination games
JEL codes: D80, D81, D83, D84, E20, E30
Abstract
We survey work using Bayesian learning in macroeconomics, highlighting common themes and new directions. First, we present many of the common types of learning problems agents face-signal extraction problems-and trace out their effects on macro aggregates, in different strategic settings. Then we review different perspectives on how agents get their information. Models differ in their motives for information acquisition and the cost of information, or learning technology. Finally, we survey the growing literature on the data economy, where economic activity generates data and the information in data feeds back to affect economic activity.
