Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/262339 
Year of Publication: 
2022
Series/Report no.: 
ECONtribute Discussion Paper No. 177
Publisher: 
University of Bonn and University of Cologne, Reinhard Selten Institute (RSI), Bonn and Cologne
Abstract: 
We conduct an experiment with a representative sample from the US to study households' demand for macroeconomic information. Respondents who learn of a higher personal exposure to unemployment risk during recessions increase their demand for an expert forecast about the likelihood of a recession. This finding is consistent with macroeconomic models of endogenous information acquisition, according to which the demand for information depends on its expected benefits. Moreover, respondents' updating about their personal unemployment risk suggests that households are imperfectly informed about their exposure to aggregate fluctuations, which may distort their beliefs about the benefits of acquiring macroeconomic information.
Subjects: 
Risk Exposure
Macroeconomic Conditions
Information Acquisition
Experiment
JEL: 
D12
D14
D83
D84
E32
G11
Document Type: 
Working Paper

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