Experiments on Expectations in Macroeconomics and Finance

Tiziana Assenza, Te Bao, Cars Hommes and Domenico Massaro

A chapter in Experiments in Macroeconomics, 2014, vol. 17, pp 11-70 from Emerald Group Publishing Limited

Abstract: Expectations play a crucial role in finance, macroeconomics, monetary economics, and fiscal policy. In the last decade a rapidly increasing number of laboratory experiments have been performed to study individual expectation formation, the interactions of individual forecasting rules, and the aggregate macro behavior they co-create. The aim of this article is to provide a comprehensive literature survey on laboratory experiments on expectations in macroeconomics and finance. In particular, we discuss the extent to which expectations are rational or may be described by simple forecasting heuristics, at the individual as well as the aggregate level.

Keywords: Expectation feedback; self-fulfilling beliefs; heuristic switching model; experimental economics (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (68)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... 3-230620140000017002
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)

Related works:
Working Paper: Experiments on Expectations in Macroeconomics and Finance (2014)
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:eme:rexezz:s0193-230620140000017002

DOI: 10.1108/S0193-230620140000017002

Access Statistics for this chapter

More chapters in Research in Experimental Economics from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().