substantially. We document this fact by comparing an easy-to-grasp expectations-based policy, unconventional fiscal policy, with a … consumption via managing inflation expectations based on the Euler equation. Unconventional fiscal policy uses trivial … announcements of future consumer-price increases to boost inflation expectations and consumption expenditure on impact. Instead …

return beliefs mirrors the importance of exerting self-control, such that return expectations first increase as the exam … find this prediction confirmed: average subjective expectations of returns increase by about 20% over the period before the …

How do households adjust their spending behavior in response to changes in home price expectations? We conduct a field … experiment with a sample of Americans that links survey data on home price expectations to actual spending behaviour as measured … in a rich home-scanner dataset. In the experiment we exogenously vary households' home price expectations by providing …

form adaptive expectations, based on an evolving individual mental model, their behaviour becomes much more interesting in … indicate that assumptions on bounded rationality, and on adaptive expectations are perfectly compatible with sound and …