Noncompliant behaviors in general equilibrium: A survey

Abstract

AbstractThis paper reviews the literature on dynamic general equilibrium models that incorporate noncompliant behaviors. It organizes contributions according to selected dimensions that denote important pillars of the macroeconomic literature and that are relevant to explaining the nature and role of non‐compliant behaviors. These pillars are business cycles, macroeconomic policies, labor markets, income inequality, and financial factors. Starting with studies from the early 2000s, when general equilibrium models first began to include noncompliant behaviors, our study provides a temporal excursus on the evolution of the phenomenon in this literature.