Inflation illiteracy - a micro-data analysis

Fredrik N G Andersson; Erik Hjalmarsson; Pär Österholm

Inflation illiteracy - a micro-data analysis

Fredrik N G Andersson, Erik Hjalmarsson, Pär Österholm

Nationalekonomiska institutionen

Forskningsoutput: Tidskriftsbidrag › Artikel i vetenskaplig tidskrift

Sammanfattning

Survey data Economic Tendency Survey Swedish households' perceptions of the current rate of inflation and their expectations of the future rate of inflation. They analyse what percentage of households can be considered to be poorly informed about inflation (as their responses devia on te significantly from the historical pattern of inflation), and what characterises these households

Originalspråk	engelska
Sidor (från-till)	106-119
Tidskrift	Sveriges Riksbank Economic Review
Volym	2023
Nummer	2
Status	Published - 2023 mars 8

Ämnesklassifikation (UKÄ)

Nationalekonomi

Fria nyckelord

inflation expectations
survey data
inflation illiteracy

Tillgång till dokument

https://www.riksbank.se/globalassets/media/rapporter/pov/engelska/2022/economic-review-2-2022.pdf

Citera det här

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title = "Inflation illiteracy - a micro-data analysis",

abstract = "Using micro-level survey data from the National Institute of EconomicResearch{\textquoteright}s Economic Tendency Survey, we find that a relatively largeshare of Swedish households is ill-informed about the rate of inflation inthe economy, with perceived and expected rates of inflation deviatingsubstantially from official measures. Probit analysis of the data indicatesthat such inflation illiteracy is related to respondent characteristics,including income, education and sex. Finally, we show that the treatmentof extreme-value answers has a substantial effect on the aggregated timeseries typically reported and discussed.",

keywords = "inflation expectations, survey data, inflation illiteracy",

author = "Andersson, {Fredrik N G} and Erik Hjalmarsson and P{\"a}r {\"O}sterholm",

year = "2023",

month = mar,

day = "8",

language = "English",

volume = "2023",

pages = "106--119",

journal = "Sveriges Riksbank Economic Review",

issn = "2001-029X",

number = "2",

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TY - JOUR

T1 - Inflation illiteracy - a micro-data analysis

AU - Andersson, Fredrik N G

AU - Hjalmarsson, Erik

AU - Österholm, Pär

PY - 2023/3/8

Y1 - 2023/3/8

N2 - Using micro-level survey data from the National Institute of EconomicResearch’s Economic Tendency Survey, we find that a relatively largeshare of Swedish households is ill-informed about the rate of inflation inthe economy, with perceived and expected rates of inflation deviatingsubstantially from official measures. Probit analysis of the data indicatesthat such inflation illiteracy is related to respondent characteristics,including income, education and sex. Finally, we show that the treatmentof extreme-value answers has a substantial effect on the aggregated timeseries typically reported and discussed.

AB - Using micro-level survey data from the National Institute of EconomicResearch’s Economic Tendency Survey, we find that a relatively largeshare of Swedish households is ill-informed about the rate of inflation inthe economy, with perceived and expected rates of inflation deviatingsubstantially from official measures. Probit analysis of the data indicatesthat such inflation illiteracy is related to respondent characteristics,including income, education and sex. Finally, we show that the treatmentof extreme-value answers has a substantial effect on the aggregated timeseries typically reported and discussed.

KW - inflation expectations

KW - survey data

KW - inflation illiteracy

M3 - Article

SN - 2001-029X

VL - 2023

SP - 106

EP - 119

JO - Sveriges Riksbank Economic Review

JF - Sveriges Riksbank Economic Review

IS - 2

ER -

Inflation illiteracy - a micro-data analysis

Sammanfattning

Ämnesklassifikation (UKÄ)

Fria nyckelord

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