[go: up one dir, main page]
More Web Proxy on the site http://driver.im/
  EconPapers    
Economics at your fingertips  
 

The closer we get, the better we are?

Nathan Goldstein and Ben‐Zion Zilberfarb

Economic Inquiry, 2023, vol. 61, issue 2, 364-376

Abstract: Not always. A general requirement in models of expectations formation is that forecast accuracy should improve when getting closer to the target date. We apply a multi‐horizon bootstrap test to a unique Israeli survey of firm‐level inflation forecasts, which encompasses periods of three digits annual rates, and periods of moderate and low inflation. We find that improvements in forecast accuracy were significant during high and moderate inflation periods, but not in the low‐inflation environment. The results are in line with rational inattention, induced by a decline in inflation predictability. Further support is provided by evidence from the US SPF survey.

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/ecin.13118

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:ecinqu:v:61:y:2023:i:2:p:364-376

Ordering information: This journal article can be ordered from
https://ordering.onl ... s.aspx?ref=1465-7295

Access Statistics for this article

Economic Inquiry is currently edited by Tim Salmon

More articles in Economic Inquiry from Western Economic Association International Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2024-09-05
Handle: RePEc:bla:ecinqu:v:61:y:2023:i:2:p:364-376