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On the Rationality of the General Public

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Author Info
GEBHARD KIRCHGÄSSNER ()

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Abstract

Using Allensbach survey data about how people look forward to the coming year, we construct true ex post-forecasts and compare them with the forecasts produced by the German Council of Economic Experts and by the Economic Research Institutes. Then, we perform rationality tests for these forecast series. The Allensbach forecasts outperform the professional forecasts in many respects. Finally, we ask whether information included in short-term interest rates is reflected in the different forecasts. We show that the Allensbach forecasts seem to fully take into account this information, while the professional forecasts do not. Thus, when making expectations, the German general public seems to consider more information than the professional forecasters.

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File URL: http://www.vwa.unisg.ch/RePEc/usg/dp2005/DP-13_Ki.pdf
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Publisher Info
Paper provided by Department of Economics, University of St. Gallen in its series University of St. Gallen Department of Economics working paper series 2005 with number 2005-13.

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Length: 9 pages
Date of creation: Jul 2005
Date of revision:
Handle: RePEc:usg:dp2005:2005-13

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C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Other Model Applications

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References listed on IDEAS
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  1. Gebhardt Kirschgässner & Marcel Savioz, 2001. "Monetary Policy and Forecasts for Real GDP Growth: An Empirical Investigation for the Federal Republic of Germany," German Economic Review, Blackwell Publishing, vol. 2(4), pages 339-365, November. [Downloadable!] (restricted)
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Cited by:
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  1. Birger Antholz, 2006. "Geschichte der quantitativen Konjunkturprognose-Evaluation in Deutschland," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 75(2), pages 12-33. [Downloadable!] (restricted)
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This page was last updated on 2009-12-10.


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