Consumer forecast revisions: Is information really so sticky?

C-Tier
Journal: Economics Letters
Year: 2017
Volume: 161
Issue: C
Pages: 112-115

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Previous studies using consumer survey data on inflation expectations find that consumers revise their inflation forecasts approximately once every eight months, suggesting that information is quite “sticky.” However, in the consumer survey data analyzed, respondents take the survey twice with a six-month gap, and responses are reported to the nearest integer. Both the low frequency and the rounding result in overestimation of information stickiness. Higher-frequency unrounded data reveals that consumers revise their inflation expectations far more frequently—about five times in an eight month period.

Technical Details

RePEc Handle
repec:eee:ecolet:v:161:y:2017:i:c:p:112-115
Journal Field
General
Author Count
1
Added to Database
2026-01-24