Arbeitspapier

Households' disagreement on inflation expectations and socioeconomic media exposure in Germany

Inflation expectations are often found to depend on socioeconomic and demographic characteristics of households, such as age, income and education, however, the reasons for this systematic heterogeneity are not yet fully understood. Since accounting for these expectation differentials could help improve the communication strategies of central banks, we test the impact of three sources of the demographic dependence of inflation expectations using data for Germany. Overall, our findings suggest that household-specific inflation rates and group-specific news consumption accounts for the higher expectation gaps of younger and older households, households with lower income and unemployed survey respondents, while households' inflation perceptions only play a minor role.

ISBN
978-3-86558-940-8
Language
Englisch

Bibliographic citation
Series: Bundesbank Discussion Paper ; No. 27/2013

Classification
Wirtschaft
Forecasting Models; Simulation Methods
Expectations; Speculations
Prices, Business Fluctuations, and Cycles: Forecasting and Simulation: Models and Applications
Subject
Inflation Expectations and Perceptions
Demographic Heterogeneity
News Media Effects
Household-Specific Inflation Rates
System Estimation

Event
Geistige Schöpfung
(who)
Menz, Jan-Oliver
Poppitz, Philipp
Event
Veröffentlichung
(who)
Deutsche Bundesbank
(where)
Frankfurt a. M.
(when)
2013

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Menz, Jan-Oliver
  • Poppitz, Philipp
  • Deutsche Bundesbank

Time of origin

  • 2013

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