In this paper we estimate a New-Keynesian DSGE model with heterogeneity in price and wage setting behavior. In a recent study, Coibion and Gorodnichenko (2011) develop a DSGE model, in which firms follow four different types of price setting schemes: sticky prices, sticky information, rule of...

This study provides insights into the expectation-updating behavior of Japanese households with regard to future inflation. Households do not renew their information set in every period, but they do so at a greater frequency than that argued in the literature. A more volatile inflation rate...

This paper studies the formation of consumers’ infl‡ation expectations using<br/>micro-level data from the Michigan Survey. It shows that beyond the well-established socio-economic determinants of infl‡ation expectations like gender, income or education also other characteristics like the...