Armantier, O, Bruine de Bruin, W orcid.org/0000-0002-1601-789X, Topa, G et al. (2 more authors) (2015) Inflation expectations and behavior: Do survey respondents act on their beliefs? International Economic Review, 56 (2). pp. 505-536. ISSN 0020-6598
Abstract
We compare the inflation expectations reported by consumers in a survey with their behavior in a financially incentivized investment experiment. The survey is found to be informative in the sense that the beliefs reported by the respondents are correlated with their choices in the experiment. More importantly, we find evidence that most respondents act on their inflation expectations showing patterns consistent with economic theory. Respondents whose behavior cannot be rationalized tend to have lower education and lower numeracy and financial literacy. These findings help confirm the relevance of inflation expectations surveys and provide support to the microfoundations of modern macroeconomic models.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | This is the peer reviewed version of the following article:Armantier, O, Bruine de Bruin, W, Topa, G, van der Klaauw, W and Zafar, B (2015) Inflation expectations and behavior: Do survey respondents act on their beliefs? International Economic Review, 56 (2). 505 - 536 , which has been published in final form at http://dx.doi.org/10.1111/iere.12113. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving. |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Management Division (LUBS) (Leeds) > Management Division Decision Research (LUBS) |
Depositing User: | Symplectic Publications |
Date Deposited: | 08 Oct 2015 09:20 |
Last Modified: | 16 Apr 2021 09:31 |
Published Version: | http://dx.doi.org/10.1111/iere.12113 |
Status: | Published |
Publisher: | Wiley |
Identification Number: | 10.1111/iere.12113 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:86050 |