Addenda to: “Learning from Prices: Public Communication and Welfare”

The following addenda contain supplementary materials. Addendum I, page 2, shows that, in our model, monetary shocks are expansionary; Addendum II, page 4 proposes an extension of our model where the micro and the macro elasticity of labor supply differ. The analysis reveals that the welfare results are governed by the macro elasticity; Addendum III, page 8, shows that our results are robust to the opening of a bond market; Addendum IV, page 9, shows that our results are robust to making the volatility of intermediate goods prices arbitrarily large; Addendum V, page 10, derives conditions for unique and multiple equilibria. We show how these conditions are affected by public information. In particular, because of multiplicity, public information can have discontinuous negative effects on total knowledge and welfare. The analysis also reveals that public information can decrease total knowledge even when the equilibrium is unique.