Andrade, Philippe; Coibion, Olivier; Gautier, Erwan; … - 2020 - This version: August 2020
We study how firms' expectations and actions are affected by both aggregate and industryspecific conditions using a … have no aggregate effects, firms' aggregate expectations respond persistently. This is consistent with "island" models in …. Finally, we extend the analysis to firms’ expectations of their own future price changes and document how these respond to …