Experiments on Expectations in Macroeconomics and Finance

Assenza, T., Bao, T., Hommes, C. & Massaro, D., Nov-2014, Research in Experimental Economics: Experiments in Macroeconomics. Duffy, J. (ed.). Emerald Group Publishing Limited, Vol. 17. p. 11-69 59 p.

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  • Tiziana Assenza
  • Te Bao
  • Cars Hommes
  • Domenico Massaro
Expectations play a crucial role in finance, macroeconomics, monetary economics, and fiscal policy. In the last decade a rapidly increasing number of laboratory experiments have been performed to study individual expectation formation, the interactions of individual forecasting rules, and the aggregate macro behavior they co-create. The aim of this article is to provide a comprehensive literature survey on laboratory experiments on expectations in macroeconomics and finance. In particular, we discuss the extent to which expectations are rational or may be described by simple forecasting heuristics, at the individual as well as the aggregate level.
Original languageEnglish
Title of host publicationResearch in Experimental Economics
Subtitle of host publicationExperiments in Macroeconomics
EditorsJohn Duffy
PublisherEmerald Group Publishing Limited
Number of pages59
ISBN (Print)0193-2306
Publication statusPublished - Nov-2014

ID: 13939139