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 …

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

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 countrylevel data on online search. We find: (1) Expectations are …

This paper investigates the expectations formation process of economic agents about inflation rate. Using the Market … Expectations System of Central Bank of Brazil, we perceive that agents do not update their forecasts every period and that even …