A new method for quantification of qualitative expectations

Joachim Zuckarelli

Economics and Business Letters, 2015, vol. 4, issue 3, 123-128

Abstract: For many research purposes it is necessary to quantify qualitative inflation or other expectations from consumer or business surveys. The standard quantification method that is widely referred to in the literature for qualitative inflation expectations is the Carlson-Parkin method, with various extensions. This study proposes a novel quantification method that connects the survey respondents’ inflation experience with forward looking information. The article outlines the new approach and applies it exemplarily to qualitative inflation survey data for the Euro area and the United States.

Date: 2015
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