Seemingly Irrelevant Events Affect Perceptions and Expectations - The FIFA World Cup 2006 as a Natural Experiment

Armin Falk, Thomas Dohmen, Uwe Sunde and David Huffman

No 5851, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Prominent economic theories have emphasized the role of commonly held perceptions and expectations for determining macroeconomic outcomes. A key empirical question is how such collectively held beliefs are formed. We use the FIFA World Cup 2006 as a natural experiment. We provide direct evidence that seemingly irrelevant events (the outcomes of soccer matches) can systematically affect individual perceptions about economic prospects, both on a personal and economy-wide level.

Keywords: Expectation formation; Sunspots; Soccer world cup; Macroeconomic outcomes; Psychology (search for similar items in EconPapers)
JEL-codes: D0 D8 E0 (search for similar items in EconPapers)
Date: 2006-09
New Economics Papers: this item is included in nep-cbe, nep-exp, nep-mac and nep-spo
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

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