Differential Interpretation Of Information In Inflation Forecasts

A-Tier
Journal: Review of Economics and Statistics
Year: 1999
Volume: 81
Issue: 2
Pages: 217-226

Authors (2)

Eugene Kandel (Hebrew University of Jerusalem) Ben-Zion Zilberfarb (not in RePEc)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

We test the hypothesis associated with a standard assumption in the theoretical literature on learning: that economic agents interpret information identically. We use a data set based on a survey of Israeli business executives forecasting future inflation. One of the main advantages of using this data is that a major change in the inflation regime in 1985 can be treated as a natural experiment in new beliefs formation. We develop a methodology for testing this hypothesis and find evidence that is inconsistent with the identical-interpretation hypothesis, but is consistent with the proposed alternative. © 1999 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology

Technical Details

RePEc Handle
repec:tpr:restat:v:81:y:1999:i:2:p:217-226
Journal Field
General
Author Count
2
Added to Database
2026-01-25