Experiments on Expectations in Macroeconomics and FinanceAssenza, 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.
Research output: Chapter in Book/Report/Conference proceeding › Chapter › Academic › peer-review
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.
|Title of host publication||Research in Experimental Economics|
|Subtitle of host publication||Experiments in Macroeconomics|
|Publisher||Emerald Group Publishing Limited|
|Number of pages||59|
|Publication status||Published - Nov-2014|