Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/311150 
Year of Publication: 
2024
Series/Report no.: 
ECB Working Paper No. 2986
Publisher: 
European Central Bank (ECB), Frankfurt a. M.
Abstract: 
We use inflation and income growth expectations from the ECB Consumer Expectations Survey to measure the subjective expected pass-through of inflation to income in the main euro area countries. By aggregating consumers' responses to probabilistic questions, we obtain significantly higher estimates of the pass-through than those obtained from micro data. Our methodology allows one to examine how the pass-through varies along the probability distribution of expected inflation, which turns out to be particularly large for moderate inflation expectations. We find significant heterogeneity in the inflation pass-through across countries, ages and income groups, consistent with different wage and pension indexation regimes.
Subjects: 
price-wage spiral
consumer expectations survey
subjective probability forecasts aggregation
regression across quantiles
JEL: 
C10
C22
E31
E66
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-6887-4
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.