Determinants of Disagreement: Learning from Indian Inflation Expectations Survey of Households

Gaurav Kumar Singh and Tathagata Bandyopadhyay

IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department

Abstract: This study explores the determinants of disagreement in households' belief on future inflation. Households commonly show strong information rigidity as a consequence of stickiness in their information update (Mankiw and Reis, 2002, 2006). This paper contributes to the understanding of the formation of disagreement of the Indian households by investigating the effects of - day to day purchasing experiences of the agents, the intensity of news about inflation in the media, and central bank transparency. We find the positive effects of their recent price experiences, media influence, and inflation targeting on lowering the disagreement. Female and Young people tend to exhibit stronger effects in comparison to their counterparts.

Date: 2021-01-20
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.iima.ac.in/sites/default/files/rnpfiles/4009687172021-01-01.pdf English Version (application/pdf)

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:iim:iimawp:14645

Access Statistics for this paper

More papers in IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department Contact information at EDIRC.
Bibliographic data for series maintained by ().