Can households see into the future? survey evidence from the Netherlands
This paper presents new evidence on the expectation formation process from a Dutch household survey. Households become too optimistic about their future income after their income has improved, consistent with the over-extrapolation of their experience. We show that this effect of experience is persistent and that households over-extrapolate income losses more than income gains. Furthermore, older households over-extrapolate more, suggesting that they did not learn over time to form more accurate expectations. Finally, we study the relationship between expectation errors and consumption. We fin... Mehr ...
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Dokumenttyp: | workingpaper |
Erscheinungsdatum: | 2018 |
Schlagwörter: | ddc:330 |
Sprache: | Englisch |
Permalink: | https://search.fid-benelux.de/Record/base-26830334 |
Datenquelle: | BASE; Originalkatalog |
Powered By: | BASE |
Link(s) : | http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/48379 |