Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/252301 
Year of Publication: 
2022
Series/Report no.: 
ECONtribute Discussion Paper No. 140
Publisher: 
University of Bonn and University of Cologne, Reinhard Selten Institute (RSI), Bonn and Cologne
Abstract: 
We survey samples of German firms and households to document novel stylized facts about the extent of information frictions among the two groups. First, firms' expectations about macroeconomic variables are closer to expert forecasts and less dispersed than households', consistent with higher information frictions among households. Second, the degree of dispersion and the distance from expert forecasts varies more across groups of households than across groups of firms. Third, firms update their policy rate expectations less than households when provided with an expert forecast, consistent with holding stronger priors. Our results have implications for modeling choices, macroeconomic dynamics, and policies.
Subjects: 
Information frictions
expectation formation
firms
households
interest rates
JEL: 
D83
D84
E71
Document Type: 
Working Paper

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