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This paper examines the effects of monetary policy on asset price bubbles and production in a laboratory experimental economy. Participants play the role of household investors who are faced with consumption, labor, and investment decision....
We have demonstrated that implementing an experimental macroeconomy in the laboratory is feasible. Utilizing appropriate tools, such as automation and visual aids, an experimenter can design an experiment that involves considerable stationary repetition and learning in a reasonable time frame
...
Such experimentation can provide potentially useful causal evidence to support the development of further policy and theory.
From:
Guidon Fenig
University of British Columbia
Mariya Mileva
Kiel Institute for the World Economy
Luba Petersen S
Simon Fraser University
This paper examines the effects of monetary policy on asset price bubbles and production in a laboratory experimental economy. Participants play the role of household investors who are faced with consumption, labor, and investment decision....
We have demonstrated that implementing an experimental macroeconomy in the laboratory is feasible. Utilizing appropriate tools, such as automation and visual aids, an experimenter can design an experiment that involves considerable stationary repetition and learning in a reasonable time frame
...
Such experimentation can provide potentially useful causal evidence to support the development of further policy and theory.
From:
Guidon Fenig
University of British Columbia
Mariya Mileva
Kiel Institute for the World Economy
Luba Petersen S
Simon Fraser University