Macroeconomic Conditions and Updating of Expectations by Older Americans
AbstractEconomic theory suggests that individual decisions about consumption, saving, and labor supply should be directly linked to subjective expectations about future events. This project uses panel data from the Health and Retirement Study from 1994-2008 merged to data on a number of local and high frequency macroeconomic indicators to estimate how individual expectations respond to fluctuations in the local and national macroeconomy. Our results suggest that individuals revise their expectations in response to both local and national macroeconomic fluctuations in ways that appear to make sense, and that this is stronger for respondents with higher levels of education.
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Bibliographic InfoPaper provided by University of Michigan, Michigan Retirement Research Center in its series Working Papers with number wp259.
Length: 44 pages
Date of creation: Nov 2011
Date of revision:
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This paper has been announced in the following NEP Reports:
- NEP-AGE-2012-01-03 (Economics of Ageing)
- NEP-ALL-2012-01-03 (All new papers)
- NEP-MAC-2012-01-03 (Macroeconomics)
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.:
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NBER Working Papers
10257, National Bureau of Economic Research, Inc.
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