Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/223196
Authors: 
Dovern, Jonas
Müller, Lena Sophia
Wohlrabe, Klaus
Year of Publication: 
2020
Series/Report no.: 
Working Papers of the Priority Programme 1859 "Experience and Expectation. Historical Foundations of Economic Behaviour" No. 15
Abstract: 
Expectations are highly relevant for macroeconomic dynamics. Yet, the empirical evidence about properties of corporate macroeconomic expectations is scarce. Using new survey data on quantitative growth expectations of firms in Germany, we show that expectations are highly dispersed. The degree of dispersion depends on firm size and on how important the general economy is for the business of firms, supporting theories of rational inattention. Firms seem to extrapolate from local economic conditions and business experiences to aggregate growth expectations. Differences in growth expectations are associated with di erences in firms' Investment and labor demand.
Subjects: 
GDP expectations
expectation heterogeneity
firm
ifo business tendency survey
JEL: 
D84
E32
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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