Risk Exposure and Acquisition of Macroeconomic Information
Publikation: Working paper › Forskning
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Risk Exposure and Acquisition of Macroeconomic Information. / Roth, Christopher; Settele, Sonja; Wohlfart, Johannes.
2020.Publikation: Working paper › Forskning
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TY - UNPB
T1 - Risk Exposure and Acquisition of Macroeconomic Information
AU - Roth, Christopher
AU - Settele, Sonja
AU - Wohlfart, Johannes
PY - 2020/6/22
Y1 - 2020/6/22
N2 - We conduct an experiment with a representative sample from the US 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. Our findings are consistent with the basic premise of theories of rational inattention that demand for information depends on its expected benefit. Moreover, the fact that perceived risk exposure responds to information highlights frictions in households’ knowledge about the personal relevance of particular pieces of information. Our findings inform the modeling of information frictions in macroeconomics.
AB - We conduct an experiment with a representative sample from the US 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. Our findings are consistent with the basic premise of theories of rational inattention that demand for information depends on its expected benefit. Moreover, the fact that perceived risk exposure responds to information highlights frictions in households’ knowledge about the personal relevance of particular pieces of information. Our findings inform the modeling of information frictions in macroeconomics.
KW - Risk Exposure
KW - Macroeconomic Conditions
KW - Information Acquisition
KW - Experiment.
KW - Risk Exposure
KW - Macroeconomic Conditions
KW - Information Acquisition
KW - Experiment
U2 - 10.2139/ssrn.3612751
DO - 10.2139/ssrn.3612751
M3 - Working paper
T3 - CEBI Working Paper Series
BT - Risk Exposure and Acquisition of Macroeconomic Information
ER -
ID: 254665204