Household Inflation Expectations: Information Gathering, Inattentive or ‘Stubborn’?

Easaw, Joshy ; Golinelli, Roberto (2012) Household Inflation Expectations: Information Gathering, Inattentive or ‘Stubborn’? Bologna: Dipartimento di Scienze economiche DSE, p. 22. DOI 10.6092/unibo/amsacta/3911. In: Quaderni - Working Paper DSE (853). ISSN 2282-6483.
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Abstract

The purpose of this paper is to investigate the microfoundations of how non-experts’ (or general public) form inflation expectations. Using a unique dataset we investigate the range of near rational inflation expectations. An important contribution to understanding how non-experts form their expectations is ‘sticky information expectations’, specifically the epidemiological model. Our analysis uses an extended version of the epidemiological model. We find that the general public are best depicted as those who are either information gathers or inattentive. In addition, the inattentive general public can be either forward-looking or ‘stubborn’, that is persistent.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Easaw, Joshy
Golinelli, Roberto
Keywords
household inflation expectations, ‘sticky information expectations’, forward-looking or ‘stubborn’
Subjects
ISSN
2282-6483
DOI
Deposit date
12 Dec 2013 14:13
Last modified
19 Feb 2014 08:54
URI

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