A note on the Lucas imperfect-information model: Linear projection and the normality of the variables

The Lucas imperfect-information model is still one of the main macroeconomic theories investigating the microeconomic foundations of sluggish adjustment of nominal wages and prices. This paper derived the rational expectations of the relative prices of the individual producers in Romer´s approach of the model by the method of linear projection, and show that the normality assumptions on the variables of the Lucas Model is not necessary, the independence assumptions between the variables can be relaxed by the non-correlationships. Finally, we argued that the linear projection is a more natural way for the forecast of the economic agents.