Economists have long emphasized the importance of expectations in determining macroeconomic outcomes Yet there has been … almost no recent effort to model actual empirical expectations data; instead macroeconomists usually simply assume … expectations are rational This paper shows that while empirical household expectations are not rational in the usual sense …

This paper examines German business survey data to uncover the influence of political news on expectations concerning …

expectations about terrorism, and study the effects these last have on households' portfolio choices and spending patterns. We find …

We analyze the role of consumer expectations in a Hotelling model of price competition when products exhibit network … effects. Expectations can be strong (stubborn), weak (price-sensitive) or partially stubborn (a mix of weak and strong). As a … rule, the price-sensitivity of demand declines when expectations are more stubborn. An increase of stubbornness i) reduces …

Biased longevity expectations will lead to suboptimal decisions regarding saving, retirement, annuitization and health …, with consequences for wellbeing in old age. Systematic differences in the accuracy of longevity expectations may partly … veracity of expectations are due to the less educated and cognitively able responding less to changes in objective mortality …

about how teachers form expectations and whether their expectations are systematically biased. We investigate whether … student-teacher demographic mismatch affects high school teachers' expectations for students' educational attainment. Using a … student fixed effects strategy that exploits expectations data from two teachers per student, we find that non-black teachers …

. Amongst employees, optimists earn more. These results are consistent with biased expectations leading to entry errors. As a … test of validity, we find that amongst the married, future divorcees have higher financial expectations but their …

We use novel survey data to estimate how personal experiences affect household expectations about aggregate economic … systematically extrapolate from recent locally experienced home prices when asked for their expectations about US house price changes … distribution over expected future national house price movements. We find similar results for labor market expectations, where we …