Macroeconomic expectations of various economic agents are characterized by substantial cross-sectional heterogeneity …. In this paper, we focus on expectations heterogeneity among professional forecasters. We first present stylized facts and … discuss theoretical explanations for heterogeneous expectations. We then provide an overview of the empirical evidence …

Macroeconomic expectations of various economic agents are characterized by substantial crosssectional heterogeneity …. This chapter focuses on heterogeneity in the expectations among professional forecasters, first presenting stylized facts … and discussing theoretical explanations for heterogeneous expectations, before providing an overview of the empirical …

becoming a metric for rationality. When inferential expectations are built into a Dornbusch-style model of the exchange rate … inferential expectations. If a belief is overturned through the build-up of evidence, agents are assumed to switch to the rational … expectation. Rational expectations are shown to be a special (limiting) case of inferential expectations, with the test size alpha …

assumption that belief formation be treated as a classical hypothesis test, which we label inferential expectations, can explain … predictions. In our stochastic environment, inferential expectations with a low test size alpha (conservative inferential … expectations) predict exchange rates better than rational expectations in ten sessions out of twelve. Belief conservatism appears …

particular violation of the Full Information Rational Expectations hypothesis that requires explanation. In contrast, minor …

unconventional policies that aim to increase households' spending directly through managing their expectations. We first show … theoretically and empirically that higher in ation expectations increase households' consumption. We then design a difference … demand via managing expectations. Whereas unconventional fiscal policy increases households' expectations and spending …

According to the expectations channel, a fiscal consolidation may give rise to less contractionary, or even … design a laboratory experiment to study the conditions under which the expectations channel operates. Our results indicate … consumption, which supports the expectations channel. We also find that the expectations channel is more pronounced if the fiscal …

candidate is expectations: what people expect could affect how they feel about what actually occurs. In a real-effort experiment …, we manipulate the rational expectations of subjects and check whether this manipulation influences their effort provision …-based reference-dependent preferences: if expectations are high, subjects work longer and earn more money than if expectations are low. …