Risk Exposure and Acquisition of Macroeconomic Information
Sonja Settele and
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Sonja Settele: CEBI, University of Copenhagen
Johannes Wohlfart: CEBI, University of Copenhagen
No 20-24, CEBI working paper series from University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI)
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. This finding is consistent with macroeconomic models of endogenous information acquisition, according to which the demand for information depends on its expected benefits. Moreover, respondents’ updating about their personal unemployment risk suggests that households are imperfectly informed about their exposure to aggregate fluctuations, which may distort their beliefs about the benefits of acquiring macroeconomic information.
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)
New Economics Papers: this item is included in nep-mac and nep-ore
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Working Paper: Risk Exposure and Acquisition of Macroeconomic Information (2021)
Working Paper: Risk Exposure and Acquisition of Macroeconomic Information (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:kud:kucebi:2024
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