We estimate a Heterogeneous-Agent New Keynesian model with sticky household expectations that matches existing …

. We investigate the model under different expectational assumptions: rational expectations, subjective expectations with … infinite-horizon learning, and subjective expectations with Euler-equation learning. Under rational expectations, the model … sensitive to the modeling of expectations, and they highlight learning as a key behavioral feature to understand macroeconomic …

The adaptive learning approach has been fruitfully employed to model the formation of aggregate expectations at the … macroeconomic level, as an alternative to rational expectations. This paper uses adaptive learning to understand, instead, the … formation of expectations at the micro-level, by focusing on individual expectations and, in particular, trying to account for …

expectations under different policy counterfactuals. We express the consumption of non-hand-to-mouth households as a function of … expectations only and elicit all expectations appearing in the consumption functions for alternative policy scenarios with tailored … surveys. Feeding these individual-level expectations into the model illustrates that a modest forward guidance statement in …

Using a new consumer survey dataset, we show that macroeconomic preferences affect expectations and economic decisions … through different channels. While household expectations are on average inversely related to preferences, households with the … same inflation or interest rate expectations can differently assess whether the level of the corresponding variable is …