Japanese GDP Forecasters Are Pressimistic in Boom, Optimistic in Recession, and Always Too Jumpy
AbstractThis paper analyzes the rationality of Japanese macroeconomic forecasters. It finds that Japanese individual forecasters are pessimistic in boom and optimistic in recession, and that they over-react to new information. Across forecasters, the magnitude of average forecast revisions is not correlated with the magnitude of average forecast errors. These results together are consistent with neither the rational expectations hypothesis nor reputation models with rational and strategic forecasters.
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Bibliographic InfoPaper provided by Institute of Social and Economic Research, Osaka University in its series ISER Discussion Paper with number 0513.
Length: 12 pages
Date of creation: 2000
Date of revision:
FORECASTS ; MACROECONOMICS ; EXPECTATIONS;
Find related papers by JEL classification:
- C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
- D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ehrbeck, Tilman & Waldmann, Robert, 1996. "Why Are Professional Forecasters Biased? Agency versus Behavioral Explanations," The Quarterly Journal of Economics, MIT Press, vol. 111(1), pages 21-40, February.
- Ashiya, Masahiro & Doi, Takero, 2001.
"Herd behavior of Japanese economists,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 46(3), pages 343-346, November.
- Keane, Michael P & Runkle, David E, 1990. "Testing the Rationality of Price Forecasts: New Evidence from Panel Data," American Economic Review, American Economic Association, vol. 80(4), pages 714-35, September.
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