Universität zu Köln

Roth, Christopher ORCID: 0000-0003-2806-7402, Settele, Sonja ORCID: 0000-0002-4703-2347 and Wohlfart, Johannes ORCID: 0000-0001-6662-8085 (2022). Risk Exposure and Acquisition of Macroeconomic Information. American Economic Review Insights, 4 (1). 34 - 54. NASHVILLE: American Economic Association. ISSN 2640-2068

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Abstract

We conduct an experiment with a representative sample from the United States to study households' demand for macroeconomic information. Respondents who learn of a higher personal exposure to unemployment risk during recessions increase their demand for an expert forecast about the likelihood of a recession. This finding is consistent with macroeconomic models of endogenous information acquisition, according to which the demand for information depends on its expected benefits. Moreover, respondents' updating about their personal unemployment risk suggests that households are imperfectly informed about their exposure to aggregate fluctuations, which may distort their beliefs about the benefits of acquiring macroeconomic information.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Roth, Christopher UNSPECIFIED orcid.org/0000-0003-2806-7402 UNSPECIFIED Settele, Sonja UNSPECIFIED orcid.org/0000-0002-4703-2347 UNSPECIFIED Wohlfart, Johannes UNSPECIFIED orcid.org/0000-0001-6662-8085 UNSPECIFIED
URN:	urn:nbn:de:hbz:38-673898
DOI:	10.1257/aeri.20200662
Journal or Publication Title:	American Economic Review Insights
Volume:	4
Number:	1
Page Range:	34 - 54
Date:	2022
Publisher:	American Economic Association
Place of Publication:	NASHVILLE
ISSN:	2640-2068
Language:	English
Faculty:	Faculty of Management, Economy and Social Sciences
Divisions:	Center of Excellence C-SEB
Subjects:	Economics
Uncontrolled Keywords:	Keywords Language INFLATION-EXPECTATIONS; STICKY PRICES Multiple languages Economics Multiple languages
Refereed:	Yes
URI:	http://kups.ub.uni-koeln.de/id/eprint/67389