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The role of confidence indices in explaining consumption growth in Sweden during the period 1975-94 is analyzed in this … paper. We first analyzed which variables influence the levels of the confidence indices. Two important such factors are … models that are considered, an Euler equation and a solved-out consumption model. In the latter model, the confidence index …
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This paper assesses the probability method for quantifying EU consumer survey data on perceived and expected inflation. Based on household level data from the Swedish consumer survey that asks for both qualitative and quantitative responses, it is found that the theoretical assumptions of the...
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A behavioral model incorporating utility based rational choice enhanced with psychological drivers is presented to study a consumer goods market, characterized by repeat purchase incidences by households. The psychological drivers incorporate purchase strategies of loyalty and change-of-pace,...
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The literature on agent-based models has been highly successful in replicating many stylized facts of financial and macroeconomic time series. Over the past decade, however, also advances in the estimation of such models have been made. Due to the inherent heterogeneity of agents and...
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We develop a stock-flow-consistent agent-based model that comprises a realistic mechanism of money creation and parametrize it to fit actually observed data. The model is used to make out-of-sample projections of broad money and credit developments under the commencement/termination of foreign...
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