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Imperfect Information and Consumer Inflation Expectations: Evidence from Microdata

Dräger, L and Lamla, MJ (2017) 'Imperfect Information and Consumer Inflation Expectations: Evidence from Microdata.' Oxford Bulletin of Economics and Statistics, 79 (6). 933 - 968. ISSN 0305-9049

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Abstract

© 2017 The Department of Economics, University of Oxford and John Wiley & Sons Ltd 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.

Item Type: Article
Subjects: H Social Sciences > HG Finance
Divisions: Faculty of Social Sciences > Essex Business School
Faculty of Social Sciences > Essex Business School > Essex Finance Centre
Depositing User: Jim Jamieson
Date Deposited: 24 May 2017 08:46
Last Modified: 22 May 2019 01:00
URI: http://repository.essex.ac.uk/id/eprint/19714

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