A Theory of Supply Function Choice and Aggregate Supply

We are grateful to Hassan Afrouzi, Narek Alexanian, George-Marios Angeletos, Gideon Bornstein (discussant), V.V. Chari, Basil Halperin, Joe Hazell, Nobuhiro Kiyotaki, Ricardo Lagos, Jennifer La'O, Ernest Liu, N. Gregory Mankiw (discussant), Guido Menzio, Alessandro Pavan, Michael Peters, Ricardo Reis, Richard Rogerson, Kunal Sangani, Aleh Tsyvinski, Michael Woodford, Venky Venkateswaran, Gianluca Violante, Pierre Yared and seminar participants at NYU, CREI, The University of California Berkeley, Columbia University, the University of Pennsylvania, the NBER Summer Institute, the NBER DSGE Conference, the NBER Monetary Economics Conference, Carnegie Mellon University (Tepper), The Minneapolis Fed, the LAEF Junior Macroeconomics Workshop, Yale University, Princeton University, UCLA, and the University of Wisconsin for helpful comments. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.