Purpose This paper aims to analyze forecasting problems from the perspective of information extraction. Circumstances are studied under which the forecast of an economic variable from one domain (country, industry, market segment) should rely on information regarding the same type of variable...

Purpose: This study aims to address the issue of prediction of inflation differences for an economy that considers either fixing its exchange rate or joining a currency union. In this setting, individual countries have limited control over their inflation, and anticipating the possible course...

Earlier experimental evidence indicates that some decision makers under-invest in information when it is costly. This insight is applied to the cost–benefit analysis of the provision of data obtained by satellites. In fields like agriculture, remotely sensed information of great precision can...

Markets and expectations -- Expected utility maximization -- Effects of heterogeneous expectations -- Forecasting among alternative strategies under uncertainty -- Expectations in time series models -- Costly information and decision making -- Applied welfare economics with boundedly rational...

"The notion that expectations play a key role in economic decision making is a very old one. Over the past 100 years, major advances in the application of this insight in the formulation of economic models have been made in various subfields of economics. The concept of extrapolation, the idea...