Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/50407
Authors: 
Maag, Thomas
Year of Publication: 
2009
Series/Report no.: 
KOF working papers // KOF Swiss Economic Institute, ETH Zurich 230
Abstract: 
This paper assesses the probability method for quantifying EU consumer survey data on perceived and expected inflation. Based on household level data from the Swedish consumer survey that asks for both qualitative and quantitative responses, it is found that the theoretical assumptions of the method do not hold. In particular, estimates of unrestricted response schemes indicate that response intervals are asymmetric and that qualitative inflation expectations are formed relative to perceptions of current inflation. Nevertheless, the probability method generates series that are highly correlated with the mean of actual quantitative beliefs. For quantifying the cross-sectional dispersion of beliefs, however, an index of qualitative variation is most accurate.
Subjects: 
quantification
inflation expectations
inflation perceptions
qualitative response data
belief formation
JEL: 
C53
D84
E31
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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