This paper estimates a New Keynesian model extended to include heterogeneous expectations, to revisit the evidence that … 1980s. Different shares of consumers and firms form either rational expectations, or adaptive and extrapolative … expectations. The inclusion of heterogeneous expectations alters the determinacy properties of the model compared to the …

develop a behavioral New Keynesian macroeconomic model, in which we relax the assumption of rational expectations. Agents are … variances to affect the economy. In forming expectations, agents may be subject to shifts in optimism and pessimism (sentiment …

Subjective expectations about future policy play an important role in individuals’ welfare. We examine how workers …’ expectations about pension reform vary with proximity to reforms, information cost, and aggregate information acquisition. We …-level representative survey data on expectations about future reforms and country-level data on online search. We find: (1) Expectations …

particular violation of the Full Information Rational Expectations hypothesis that requires explanation. In contrast, minor …

We analyze how investor expectations about economic growth and stock returns changed during the February-March 2020 … expectations about long-run (10-year) economic and stock market outcomes remained largely unchanged, and, if anything, improved … February saw the largest decline in expectations, and sold the most equity. Those respondents who were the most pessimistic in …