Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/159692
Authors: 
Easaw, Joshy
Golinelli, Roberto
Year of Publication: 
2012
Series/Report no.: 
Quaderni - Working Paper DSE 853
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.
JEL: 
D84
E31
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Working Paper

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