Subjective Income Expectations, Canonical Models and Income Risk

Xavi Ramos () and Christian Schluter ()
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Christian Schluter: Department of Economics, University of Southampton

Working Papers from Department of Applied Economics at Universitat Autonoma of Barcelona

Abstract: Expectations are central to behaviour. Despite the existence of subjective expectations data, the standard approach is to ignore these, to hypothecate a model of behaviour and to infer expectations from realisations. In the context of income models, we reveal the informational gain obtained from using both a canonical model and subjective expectations data. We propose a test for this informational gain, and illustrate our approach with an application to the problem of measuring income risk.

Keywords: subjective expectation data; canonical income models; income risk. (search for similar items in EconPapers)
JEL-codes: C23 D31 D84 D91 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2003-12
New Economics Papers: this item is included in nep-dev and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:uab:wprdea:wpdea0310

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