Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/252193 
Year of Publication: 
2022
Series/Report no.: 
IZA Discussion Papers No. 15069
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Using a new survey of firms' inflation expectations in France, we provide novel evidence about the measurement and formation of inflation expectations on the part of firms. First, French firms report inflation expectations with a smaller, but still positive, bias than households and display less disagreement. Second, we characterize the extent and manner in which the wording of questions matters for the measurement of firms' inflation expectations. Third, we document whether and how the position of the respondent within the firm affects the provided responses. Fourth, because our survey measures firms' expectations about aggregate and firmlevel wage growth along with their inflation expectations, we are able to show that expectations about wages are even more condensed than firms' inflation expectations and almost completely uncorrelated with them, indicating that firms perceive little link between price and wage inflation. Finally, an experimental treatment indicates that an exogenous change in firms' inflation expectations has no effect on their aggregate wage expectations.
Subjects: 
expectations
rational inattention
surveys
firms
JEL: 
E2
E3
E4
Document Type: 
Working Paper

Files in This Item:
File
Size
1.22 MB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.