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Uncertainty and Information Acquisition: Evidence from Firms and Households

Heiner Mikosch (), Christopher Roth, Samad Sarferaz () and Johannes Wohlfart ()
Additional contact information
Samad Sarferaz: KOF and ETH Zurich
Johannes Wohlfart: Department of Economics and CEBI, University of Copenhagen, CESifo, Danish Finance Institute

No 129, ECONtribute Discussion Papers Series from University of Bonn and University of Cologne, Germany

Abstract: We leverage the small open economy Switzerland as a testing ground for basic premises of macroeconomic models of endogenous information acquisition, using tailored surveys of firms and households. First, we show that firms perceive a greater exposure to exchange rate movements than households, which is reflected in higher levels of information acquisition and less dispersed beliefs about past and future exchange rate realizations. Similarly, within the two samples, acquisition of exchange rate information strongly increases in various proxies for stake size. Second, households who perceive higher costs of acquiring or processing information acquire less infor-mation. Finally, an exogenous increase in the perceived uncertainty of the exchange rate increases firms’ demand for a report about exchange rate developments, but not households’. Our findings inform the modeling of information frictions in macroeconomics.

Keywords: Information acquisition; Uncertainty; Stake Size; Firms; Households (search for similar items in EconPapers)
JEL-codes: D12 D14 D83 D84 E32 G11 (search for similar items in EconPapers)
Pages: 81 pages
Date: 2021-12
New Economics Papers: this item is included in nep-cwa and nep-mac
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Citations: View citations in EconPapers (5) Track citations by RSS feed

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https://www.econtribute.de/RePEc/ajk/ajkdps/ECONtribute_129_2021.pdf First version, 2021 (application/pdf)

Related works:
Working Paper: Uncertainty and Information Acquisition: Evidence from Firms and Households (2021) Downloads
Working Paper: Uncertainty and Information Acquisition: Evidence from Firms and Households (2021) Downloads
Working Paper: Uncertainty and Information Acquisition: Evidence from Firms and Households (2021) Downloads
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