The Department of Economics organizes a virtual talk on 'What Determines Household Expectations' on 6 Feb. The speaker of the talk session is Ms. Aditi SIngh, Ph.D., Brown Univerity.
Abstract:
This paper uses daily data on household expectations to examine what causes households to adjust their expectations about the future of the economy. We analyze several macro variables of policy interest and find that households respond primarily to movements in labor market variables. Further, these responses are non-linear and asymmetric: households respond more to larger shocks and to bad news. We also find the response to vary depending on local labor market conditions. Households in areas with higher local unemployment are more sensitive to changes in national unemployment than those in areas with lower local unemployment. We also examine whether media plays a role in influencing household expectations, and find that news about unemployment rises sharply during a recession, consistent with the response of expectations.
Joining Link: https://us06web.zoom.us/j/84271003341?pwd=RDNNcTErb2E1TmswRG51WGNEZVJLQT09