EconPapers    
Economics at your fingertips  
 

Information Frictions among Firms and Households

Sebastian Link, Andreas Peichl, Christopher Roth and Johannes Wohlfart

No 8969, CESifo Working Paper Series from CESifo

Abstract: We survey samples of German firms and households to document novel stylized facts about the extent of information frictions among the two groups. First, firms’ expectations about macroeconomic variables are closer to expert forecasts and less dispersed than households’, consistent with higher information frictions among households. Second, the degree of dispersion and the distance from expert forecasts varies more across groups of households than across groups of firms. Third, firms update their policy rate expectations less than households when provided with an expert forecast, consistent with holding stronger priors. Our results have implications for modelling choices, macroeconomic dynamics, and policies.

Keywords: information frictions; expectation formation; firms; households; interest rates (search for similar items in EconPapers)
JEL-codes: D83 D84 E71 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-eur and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
https://www.cesifo.org/DocDL/cesifo1_wp8969.pdf (application/pdf)

Related works:
Journal Article: Information frictions among firms and households (2023) Downloads
Working Paper: Information Frictions among Firms and Households (2022) Downloads
Working Paper: Information Frictions among Firms and Households (2022) Downloads
Working Paper: Information Frictions among Firms and Households (2021) Downloads
Working Paper: Information Frictions among Firms and Households (2021) Downloads
Working Paper: Information Frictions among Firms and Households (2021) Downloads
Working Paper: Information Frictions among Firms and Households (2021) 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:ces:ceswps:_8969

Access Statistics for this paper

More papers in CESifo Working Paper Series from CESifo Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().

 
Page updated 2025-03-30
Handle: RePEc:ces:ceswps:_8969