Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/279003 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16305
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Using randomized control trials (RCTs) applied over time in different countries, we study how the economic environment affects how agents learn from new information. We show that as inflation has recently risen in advanced economies, both households and firms have become more attentive and informed about inflation, leading them to respond less to exogenously provided information about inflation and monetary policy. We also study the effects of RCTs in countries where inflation has been consistently high (Uruguay) and low (New Zealand) as well as what happens when the same agents are repeatedly provided information in both low- and high-inflation environments (Italy). Our results broadly support models in which inattention is an endogenous outcome that depends on the economic environment.
Subjects: 
inattention
RCTs
inflation expectations
JEL: 
E3
E4
E5
Document Type: 
Working Paper

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