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.

Experiments on Expectations in Macroeconomics and Finance / T. Assenzaa, T. Baoc, C. Hommesa, D. Massaro - In: Experiments in Macroeconomics, Research in Experimental EconomicsGBR : Emerald Group Publishing Limited, 2014. - ISBN 9781784411954. - pp. 11-70 [10.1108/S0193-230620140000017002]

Experiments on Expectations in Macroeconomics and Finance

D. Massaro
2014

Abstract

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.
Expectation feedback; self-fulfilling beliefs; heuristic switching model; experimental economics
Settore SECS-P/01 - Economia Politica
Settore SECS-P/02 - Politica Economica
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2434/820849
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