Risk Exposure and Acquisition of Macroeconomic Information

Christopher Roth, Sonja Settele and Johannes Wohlfart

No 8634, CESifo Working Paper Series from CESifo

Abstract: We conduct an experiment with a representative sample from the US to study households’ demand for macroeconomic information. Respondents who learn of a higher personal exposure to unemployment risk during recessions increase their demand for an expert forecast about the likelihood of a recession. Our findings are consistent with the basic premise of theories of rational inattention that demand for information depends on its expected benefit. Moreover, the fact that perceived risk exposure responds to information highlights frictions in households’ knowledge about the personal relevance of particular pieces of information. Our findings inform the modeling of information frictions in macroeconomics.

Keywords: risk exposure; macroeconomic conditions; information acquisition; experiment (search for similar items in EconPapers)
JEL-codes: D12 D14 D83 D84 E32 G11 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-knm and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Related works:
Journal Article: Risk Exposure and Acquisition of Macroeconomic Information (2022)
Working Paper: Risk Exposure and Acquisition of Macroeconomic Information (2022)
Working Paper: Risk Exposure and Acquisition of Macroeconomic Information (2021)
Working Paper: Risk Exposure and Acquisition of Macroeconomic Information (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_8634

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