Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/307740 
Year of Publication: 
2024
Series/Report no.: 
Hannover Economic Papers (HEP) No. 726
Publisher: 
Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät, Hannover
Abstract: 
We provide evidence for an expectation gap, where risk-averse as well as impatient households and experts provide significantly higher prior inflation forecasts. Using a survey randomized control trial (RCT), we can show that information about inflation forecasts closes this expectations gap. The group, whose prior expectations was farthest from the treatment information, tends to adjust posterior expectations more strongly. However, we find no such effect with respect to forecasts for energy prices, which are less informative. Our results suggest that the expectation gap seems to be partially due to differences in information seeking between different types of individuals.
Subjects: 
Inflation expectations
patience
risk preference
households
experts
survey experiment
randomized control trial (RCT)
JEL: 
E52
E31
D84
D90
Document Type: 
Working Paper

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