Subjective Models of Workers and Managers for Macroeconomic Expectations
Date
Authors
Kumar, Saten
Bruschi, Claudia
D'Acunto, Francesco
Weber, Michael
Supervisor
Item type
Journal Article
Degree name
Journal Title
Journal ISSN
Volume Title
Publisher
American Economic Association
Abstract
We propose a measure of subjective models of the macroeconomy for firms and workers. Subjective models are highly heterogeneous across agents, and their distribution is similar within the groups of firm managers and workers. At the same time, the beliefs of managers and workers who hold the same subjective models are different in reaction to monetary shocks. The expected persistence of monetary policy tightening differs across managers based on their subjective models but not across workers. And the expected effect of monetary tightening on short-term inflation differs across workers based on their subjective models but not across managers.Description
Keywords
3801 Applied economics
Source
AEA Papers and Proceedings, 115: 248–53. ISSN: 2574-0768 (Print); 2574-0768 (Online), American Economic Association.
Publisher's version
Rights statement
This is the Author's Accepted Manuscript version of an article published in AEA Papers & Proceedings, available at DOI: 10.1257/pandp.20251016. Because P&P papers are accepted for publication quickly without going through multiple revisions, authors are permitted to post the submitted version of their P&P paper as a working paper at or around the same time as submission to P&P.