Risk Exposure and Acquisition of Macroeconomic Information

Christopher Roth, Sonja Settele and Johannes Wohlfart
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Sonja Settele: Department of Economics and CEBI, University of Copenhagen
Johannes Wohlfart: Department of Economics and CEBI, University of Copenhagen, CESifo, Danish Finance Institute

The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics

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. 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 JEL Classification: D12; D14; D83, D84; E32; G11 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-cwa and nep-exp
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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https://warwick.ac.uk/fac/soc/economics/research/w ... werp_1331_-_roth.pdf

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 (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:wrk:warwec:1331

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