This paper studies the transition to high inflation during the COVID-19 pandemic, using a behavioral version of the New Keynesian model, which replaces the conventional assumption of Rational Expectations with subjective and heterogeneous expectations. Different shares of agents in the economy...

When people choose how to communicate, they must consider whether their audience will be biased in interpreting their messages. This paper experimentally examines how politically-motivated reasoning affects information transmission. Senders are randomly matched with receivers whose political...

We explore the implications of heterogeneous, history-dependent inflation expectations in a general equilibrium setting. We propose an experience-based expectations-augmented Kalman filter to represent consumers' heterogeneous inflation expectations, where heterogeneity arises from an...

Homeownership rates and holdings of housing wealth differ immensely across countries. We specify and estimate a life cycle model with risky labor income and house prices in which households face a discrete-continuous choice between renting and owning a house, whose sale is subject to transaction...

This study replicates and extends the analysis of belief elicitation methods conducted by Danz et al. (2022). The original paper scrutinizes the binarized scoring rule (BSR) method and its effectiveness in incentivizing truthful reporting. Using data from the original controlled laboratory...