Firms' Price, Cost and Activity Expectations: Evidence from Micro Data

Lena Boneva, James Cloyne, Martin Weale and Tomasz Wieladek

The Economic Journal, 2020, vol. 130, issue 627, 555-586

Abstract: Firms' expectations play a central role in modern macroeconomic models, but little is known empirically about them. Using panel data on manufacturing firms' expectations about prices and wage rates, new orders, employment and unit costs for the United Kingdom, we document a range of stylised facts about firms' expectations and their determinants. There is wide dispersion of expectations across firms. Firms' expectations are influenced by both firm-specific factors and macroeconomic factors. We find a significant connection between past expected price and wage increases and their out-turns. Firms' expectations are, however, clearly not rational.

Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://hdl.handle.net/10.1093/ej/uez059 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Firms' Price, Cost and Activity Expectations: Evidence from Micro Data (2019)
Working Paper: Firms' price, cost and activity expectations: evidence from micro data (2019)
Working Paper: Firms' Price, Cost and Activity Expectations: Evidence from Micro Data (2019)
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:oup:econjl:v:130:y:2020:i:627:p:555-586.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

The Economic Journal is currently edited by Francesco Lippi

More articles in The Economic Journal from Royal Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press () and ().