Expectations as a source of macroeconomic persistence: Evidence from survey expectations in a dynamic macro model

A-Tier
Journal: Journal of Monetary Economics
Year: 2017
Volume: 86
Issue: C
Pages: 22-35

Score contribution per author:

4.022 = (α=2.01 / 1 authors) × 2.0x A-tier

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

Abstract

Embedding survey expectations in a standard DSGE model helps to identify key slope parameters in standard relationships; dramatically reduces the need for lagged dependent variables, often motivated by price-indexation and habit formation; and obviates the need for autocorrelated structural shocks in the key equations. Formal statistical tests demonstrate that much of the persistence in aggregate data is better accounted for by slow-moving expectations, rather than by habits, indexation and autocorrelated structural shocks.

Technical Details

RePEc Handle
repec:eee:moneco:v:86:y:2017:i:c:p:22-35
Journal Field
Macro
Author Count
1
Added to Database
2026-01-25