Essays on Expectations : Information, Formation and Outcomes
Essays on Expectations : Information, Formation and Outcomes
Author
Summary, in English
index Granger-causes individuals’ perception of macroeconomic conditions. This indicates that the way the economic media selects and frames macroeconomic news matters for individuals’ aggregate perception of macroeconomic reality.
The second chapter investigates if individuals experiencing different socio-economic environments during their formative years have different expectations about future economic conditions. We analyse differences in expectations across five generations of consumers by testing if they have different levels of confidence. The chapter focuses on all the different generations of the 1900s as defined by Howe and Strauss (1997, 2000). In our econometric model, we use the Millennial Generation as a baseline, as this generation is about to make up the largest fraction of consumers in the economy. Contrary to the theory developed by the literature on generations, such as Howe and Strauss, our results show that confidence increases gradually across generations. We find that the Millennials are more confident than generations born in the first half of the 1900s, but similar in confidence to other generations born in the second half of the 1900s.
The third chapter test whether there is an interaction effect between expectations and policy shocks, that is, whether the effect of monetary policy depends on household’s expectations of the future state of the nationwide economy and their own personal economy. We find that a positive monetary policy shock increases household savings, but the effect is weak when households are more optimistic about their own future household finances and stronger when households are more pessimistic. Households’ expectations of the Swedish economy have no impact on their savings decisions or their response to monetary policy shocks.
Department/s
Publishing year
2020-03-06
Language
English
Publication/Series
Lund Economic Studies
Issue
219
Document type
Dissertation
Publisher
Media-Tryck, Lund University, Sweden
Topic
- Economics
Keywords
- Economic Media
- Economic Expectations
- Consumer Confidence Survey
- Scandinavia
- Supervised Machine Learning
- Generations
- Socio-Economic Environment
- Economic Behavior
- Economic Change
- Monetary Policy
- Precautionary Saving
- Households
- Saving Rate
- Economic Media
- Economic Expectations
- Consumer Confidence Survey
- Scandinavia
- Supervised Machine Learning
- Generations
- Socio-Economic Environment
- Economic Behavior
- Economic Change
- Monetary Policy
- Precautionary Saving
- Households
- Saving Rate
Status
Published
Supervisor
ISBN/ISSN/Other
- ISSN: 0460-0029
- ISSN: 0460-0029
- ISBN: 978-91-7895-441-4
- ISBN: 978-91-7895-440-7
Defence date
27 March 2020
Defence time
10:15
Defence place
EC3:211
Opponent
- Michael Bergman (Associate Professor)