realistic expectations later on. This paper shows that the costs induced by high aspirations are not trivial. We first develop a …The higher our aspirations, the higher the probability that we have to adjust them downwards when forming more … theoretical framework to identify the factors that determine the effect of aspirations on expected utility. Then we present …

realistic expectations later on. This paper shows that the costs induced by high aspirations are not trivial. We first develop a …The higher our aspirations, the higher the probability that we have to adjust them downwards when forming more … theoretical framework to identify the factors that determine the effect of aspirations on expected utility. Then we present …

realistic expectations later on. This paper shows that the costs induced by high aspirations are not trivial. We first develop a …The higher our aspirations, the higher the probability that we have to adjust them downwards when forming more … theoretical framework to identify the factors that determine the effect of aspirations on expected utility. Then we present …

realistic expectations later on. This paper shows that the costs induced by high aspirations are not trivial. We first develop a …The higher our aspirations, the higher the probability that we have to adjust them downwards when forming more … theoretical framework to identify the factors that determine the effect of aspirations on expected utility. Then we present …

The paper introduces the concept of adjustment utility, that is, referencedependent utility from expectations. It …

The paper introduces the concept of adjustment utility, that is, reference-dependent utility from expectations. It …

The way in which individual expectations shape aggregate macroeconomic variables is crucial for the transmission and … effectiveness of monetary policy. We study the individual expectations formation process and the interaction with monetary policy …, within a standard New Keynesian model, by means of laboratory experiments with human subjects. Three aggregate outcomes are …

The way in which individual expectations shape aggregate macroeconomic variables is crucial for the transmission and … effectiveness of monetary policy. We study the individual expectations formation process and the interaction with monetary policy …, within a standard New Keynesian model, by means of laboratory experiments with human subjects. Three aggregate outcomes are …

Consumers' inflation expectations play a key role in the monetary transmission mechanism. As such, it is crucial for … expectations. These include the apparent overestimation of inflation by consumers as well as the negative correlation observed … between the economic outlook and inflation expectations. We also show that the uncertainty framework fits with some of the …