Jump to ContentJump to Main Navigation
Show Summary Details
More options …

The B.E. Journal of Macroeconomics

Editor-in-Chief: Cavalcanti, Tiago / Kambourov, Gueorgui

Ed. by Abraham, Arpad / Carceles-Poveda , Eva / Debortoli, Davide / Schwartzman, Felipe / Wang, Pengfei


IMPACT FACTOR 2017: 0.378
5-year IMPACT FACTOR: 0.462

CiteScore 2017: 0.62

SCImago Journal Rank (SJR) 2017: 0.553
Source Normalized Impact per Paper (SNIP) 2017: 0.605

Online
ISSN
1935-1690
See all formats and pricing
More options …

The Dynamics of European Inflation Expectations

Joerg Doepke / Jonas Dovern / Ulrich Fritsche / Jiri Slacalek
Published Online: 2008-03-13 | DOI: https://doi.org/10.2202/1935-1690.1540

We investigate the relevance of Carroll's sticky information model of inflation expectations for four major European economies (France, Germany, Italy and the United Kingdom). In contrast to the most rational expectation models, households in the sticky information environment update their expectations occasionally rather than instantaneously due to the costs of acquiring and processing information. Using survey data on household and expert inflation expectations we argue that the model adequately captures the dynamics of household inflation expectations. We estimate two alternative parametrizations of the sticky information model which differ in the stationarity assumptions about the underlying series. Our baseline stationary estimation suggests that the average frequency of information updating for European households is roughly once in 18 months. The vector error-correction model implies households update information about once a year.

Keywords: inflation expectations; sticky information; inflation persistence

About the article

Published Online: 2008-03-13


Citation Information: The B.E. Journal of Macroeconomics, Volume 8, Issue 1, ISSN (Online) 1935-1690, DOI: https://doi.org/10.2202/1935-1690.1540.

Export Citation

©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston.Get Permission

Citing Articles

Here you can find all Crossref-listed publications in which this article is cited. If you would like to receive automatic email messages as soon as this article is cited in other publications, simply activate the “Citation Alert” on the top of this page.

[2]
Nicholas Clark and Todd Makse
Journal of Elections, Public Opinion and Parties, 2018, Page 1
[3]
YINGYING XU, ZHIXIN LIU, and XING ZHANG
The Singapore Economic Review, 2017, Volume 62, Number 04, Page 859
[4]
Yingying Xu, Zhixin Liu, Zichao Jia, and Chi-Wei Su
Portuguese Economic Journal, 2017
[5]
Rina Rosenblatt-Wisch and Rolf Scheufele
Applied Economics, 2015, Volume 47, Number 26, Page 2699
[6]
Raymond M. Duch and Randolph T. Stevenson
British Journal of Political Science, 2011, Volume 41, Number 01, Page 1
[7]
Stuart N. Soroka, Dominik A. Stecula, and Christopher Wlezien
American Journal of Political Science, 2015, Volume 59, Number 2, Page 457
[8]
Tomasz Łyziak and Joanna Mackiewicz-Łyziak
Eastern European Economics, 2014, Volume 52, Number 3, Page 5
[9]
Tomasz Łyziak
Eastern European Economics, 2013, Volume 51, Number 6, Page 5
[10]
Jörg Breitung and Maik Schmeling
International Journal of Forecasting, 2013, Volume 29, Number 1, Page 142

Comments (0)

Please log in or register to comment.
Log in