Epidemiology of inflation expectations and internet search: an analysis for India
Sohini Sahu () and
Siddhartha Chattopadhyay ()
Additional contact information
Saakshi: Indian Institute of Technology Kanpur
Sohini Sahu: Indian Institute of Technology Kanpur
Journal of Economic Interaction and Coordination, 2020, vol. 15, issue 3, No 5, 649-671
Abstract This paper investigates how inflation expectations of individuals are formed in India. We investigate if the news on inflation plays a role in the formation of inflation expectations following the epidemiology-based work by Carroll (Q J Econ 118(1):269–298, 2003). The standard literature on this topic considers news coverage by the print and audio-visual media as the sources of formation of inflation expectations. Instead, we consider the Internet as a potential common source of information based on which agents form their expectations about future inflation. Based on data extracted from Google Trends, our results indicate that during the period 2006–2018, the Internet has indeed been a common source of information based on which agents have formed their expectations about future inflation, and the Internet search sentiment has had some impact on inflation expectations. Additionally, based on the inflation expectations series derived from the Google Trends data, we find that there is presence of “information stickiness” in the system since only a small fraction of the population update their inflation expectations each period.
Keywords: Inflation expectations; Epidemiology; Internet search; Google trends; India (search for similar items in EconPapers)
JEL-codes: C53 D84 E31 E37 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s11403-019-00255-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
Working Paper: Epidemiology of Inflation Expectations and Internet Search- An Analysis for India (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:jeicoo:v:15:y:2020:i:3:d:10.1007_s11403-019-00255-4
Ordering information: This journal article can be ordered from
http://www.springer. ... ry/journal/11403/PS2
Access Statistics for this article
Journal of Economic Interaction and Coordination is currently edited by A. Namatame, Thomas Lux and Shu-Heng Chen
More articles in Journal of Economic Interaction and Coordination from Springer, Society for Economic Science with Heterogeneous Interacting Agents Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().