Understanding consumer preferences is important for new product management, but is famously challenging in the absence of actual sales data. Stated-preferences data are relatively cheap but unreliable, whereas revealed-preferences data through actual choices are reliable but expensive to obtain...

We estimate a DSGE model with Preferences Over Safe Assets (POSA) on Euro Area macroeconomic data and interest rate expectations measures. The model with POSA has much better empirical fit than the otherwise identical model without, especially once interest rate expectations are added to the...