Heterogeneity in Consumers' Economic Expectations across Euro Area Countries

Dräger, Lena, Michal Marencak, Giang Nghiem and Maritta Paloviita
Authors registered in the RePEc Author Service: Lena Dräger

Hannover Economic Papers (HEP) from Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät

Abstract: This paper examines cross-country differences in consumer expectations about macroeconomic outcomes and mortgage borrowing conditions within a monetary union. Using harmonized microdata from the ECB Consumer Expectations Survey for eleven euro area countries, we document significant national disparities. By sequentially adding a rich set of consumer- and country-specific macro controls to pooled regressions with country fixed effects, we find that these factors account for much, but not all, of the cross-country heterogeneity in expectations. These remaining differences likely reflect unobserved countryspecific factors, highlighting the need for country-tailored monetary policy communication to effectively stabilize consumer expectations.

Keywords: Country heterogeneity; Expectations; Consumer Expectations Survey (search for similar items in EconPapers)
JEL-codes: D30 D84 E31 E52 (search for similar items in EconPapers)
Pages: 79 pages
Date: 2026-06
References: Add references at CitEc
Citations:

Downloads: (external link)
https://diskussionspapiere.wiwi.uni-hannover.de/pdf_bib/dp-747.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:han:dpaper:dp-747

Access Statistics for this paper

More papers in Hannover Economic Papers (HEP) from Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät Contact information at EDIRC.
Bibliographic data for series maintained by Heidrich, Christian ().