6533b830fe1ef96bd1297175

RESEARCH PRODUCT

Imperfect information and consumer inflation expectations:evidence from microdata

Michael J. LamlaLena Dräger

subject

Statistics and ProbabilityMacroeconomicsEconomics and EconometricsUnvollkommene InformationRationalitätEconomics05 social sciencesPerfect informationWirtschaftswissenschaften0502 economics and businessEconomicsInflationserwartungPanel050207 economicsStatistics Probability and UncertaintyVolatility (finance)MikrodatenSocial Sciences (miscellaneous)/dk/atira/pure/core/keywords/557389186USA050205 econometrics

description

This paper explores which factors trigger an adjustment in consumers’ inflation expectations and looks at the implications regarding forecast errors. We find support for imperfect information models, as inflation volatility and news trigger an adjustment in expectations. Furthermore, we document that individual expectations become more accurate if they have been adjusted.

10.1111/obes.12189http://fox.leuphana.de/portal/de/publications/imperfect-information-and-consumer-inflation-expectations(0b112f56-4f20-4596-ad54-e4e48d169100).html