Information Choice in Macroeconomics and Finance

This graduate textbook provides a comprehensive analysis of information choice, a captivating field of research in economics and finance. While most theories in these disciplines attempt to predict human behavior based on their knowledge of the world, the study of information choice goes a step further by examining what individuals actually know about their environments. Its aim is to explain how individuals acquire knowledge and the impact this information has on collective outcomes. Rather than making assumptions about what people know or don't know, information choice investigates what individuals would choose to know and how that knowledge would influence their decision-making.

Laura Veldkamp's textbook serves as an essential resource for graduate students in economics and finance who wish to delve into this fascinating area of research. It effectively demonstrates the application of information choice in resolving questions in monetary economics, portfolio choice theory, business cycle theory, international finance, asset pricing, and other related fields. Moreover, it provides valuable guidance on constructing and evaluating applied theory models that incorporate information frictions. The book also explores recent advancements in topics such as rational inattention, information markets, and strategic games with heterogeneous information.