9

A Theory of Dynamic Product Awareness and Targeted Advertising

Technological advances in advertising enable firms to contact new customers faster and to better target those most likely to buy their products. To study the aggregate implications, we develop a framework of demand as a network, where heterogeneous consumers dynamically become “aware” of differentiated products. With their adver- tising choices, firms can affect the rate at which their networks expand (“contacting”) and the probability with which they match with high valuation consumers (“targeting”).

Differentiable State-Space Models and Hamiltonian Monte Carlo Estimation

We propose a methodology to take dynamic stochastic general equilibrium (DSGE) models to the data based on the combination of differentiable state-space models and the Hamiltonian Monte Carlo (HMC) sampler.