TY - CHAP
T1 - Experiments in Macroeconomics
AU - Assenza, Tiziana
AU - Hommes, Cars
AU - Massaro, Domenico
PY - 2014
Y1 - 2014
N2 - Expectations play a crucial role in finance, macroeconomics, monetary economics, and fiscal policy. In the last decade a rapidly increasing number of laboratory experiments have been performed to study individual expectation formation, the interactions of individual forecasting rules, and the aggregate macro behavior they co-create. The aim of this article is to provide a comprehensive literature survey on laboratory experiments on expectations in macroeconomics and finance. In particular, we discuss the extent to which expectations are rational or may be described by simple forecasting heuristics, at the individual as well as the aggregate level.
AB - Expectations play a crucial role in finance, macroeconomics, monetary economics, and fiscal policy. In the last decade a rapidly increasing number of laboratory experiments have been performed to study individual expectation formation, the interactions of individual forecasting rules, and the aggregate macro behavior they co-create. The aim of this article is to provide a comprehensive literature survey on laboratory experiments on expectations in macroeconomics and finance. In particular, we discuss the extent to which expectations are rational or may be described by simple forecasting heuristics, at the individual as well as the aggregate level.
KW - Expectation feedback, self-fulfilling beliefs, heuristic switching model, experimental economics
KW - Expectation feedback, self-fulfilling beliefs, heuristic switching model, experimental economics
UR - http://hdl.handle.net/10807/74608
UR - http://www.emeraldinsight.com/doi/abs/10.1108/s0193-230620140000017002
U2 - 10.1108/S0193-230620140000017002
DO - 10.1108/S0193-230620140000017002
M3 - Chapter
SN - 978-1-78441-195-4
SP - 11
EP - 70
BT - Experiments in Macroeconomics
A2 - Duffy, J
ER -