2024-03-29T11:38:33
116473
Fri Mar 29 11:38:34 EDT 2024
Replication data for: Cognitive Abilities and Inflation Expectations
Francesco D'Acunto
Daniel Hoang
Maritta Paloviita
Michael Weber
116473
https://doi.org/10.3886/E116473V1
Cognitive abilities help explain the large cross-sectional variation in inflation expectations at the household level. But which type of cognitive abilities are important? We find that not only quantitative abilities but also logical and verbal abilities are important to explain the accuracy and plausibility of households' inflation expectations. We discuss the channels through which different forms of cognition might shape households' abilities to forecast future macroeconomic variables. We also draw implications for the effectiveness of policies that aim to manage households' expectations.
D12 Consumer Economics: Empirical Analysis
D84 Expectations; Speculations
E31 Price Level; Inflation; Deflation
E37 Prices, Business Fluctuations, and Cycles: Forecasting and Simulation: Models and Applications