Replication data for: The Formation of Expectations, Inflation, and the Phillips Curve
- Coibion, Olivier
- Gorodnichenko, Yuriy
- Kamdar, Rupal
AbstractThis paper argues for a careful (re)consideration of the expectations formation process and a more systematic inclusion of real-time expectations through survey data in macroeconomic analyses. While the rational expectations revolution has allowed for great leaps in macroeconomic modeling, the surveyed empirical micro-evidence appears increasingly at odds with the full-information rational expectation assumption. We explore models of expectation formation that can potentially explain why and how survey data deviate from full-information rational expectations. Using the New Keynesian Phillips curve as an extensive case study, we demonstrate how incorporating survey data on inflation expectations can address a number of otherwise puzzling shortcomings that arise under the assumption of full-information rational expectations.
Is supplement to
DOI: 10.1257/jel.20171300 (Text)
Coibion, Olivier, Yuriy Gorodnichenko, and Rupal Kamdar. “The Formation of Expectations, Inflation, and the Phillips Curve.” Journal of Economic Literature 56, no. 4 (December 2018): 1447–91. https://doi.org/10.1257/jel.20171300.
- ID: 10.1257/jel.20171300 (DOI)
Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-12