EconPapers    
Economics at your fingertips  
 

Epidemiology of inflation expectations and internet search: an analysis for India

Saakshi (), 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: 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)
Date: 2020
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.

Related works:
Working Paper: Epidemiology of Inflation Expectations and Internet Search- An Analysis for India (2019) Downloads
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: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

DOI: 10.1007/s11403-019-00255-4

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 ().

 
Page updated 2020-10-07
Handle: RePEc:spr:jeicoo:v:15:y:2020:i:3:d:10.1007_s11403-019-00255-4