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Uncertainty and Information Acquisition: Evidence from Firms and Households

Author

Listed:
  • Heiner Mikosch
  • Christopher Roth
  • Samad Sarferaz
  • Johannes Wohlfart

Abstract

We leverage the small open economy Switzerland as a testing ground for basic premises of macroeconomic models of endogenous information acquisition, using tailored surveys of firms and households. Firms and households perceiving a greater exposure to exchange rate fluctuations acquire more information about the exchange rate. Moreover, higher perceived costs of acquiring or processing information are associated with lower levels of information acquisition. Finally, an exogenous increase in the perceived uncertainty of the exchange rate increases firms' demand for a report about exchange rate developments, but not households'. Our findings inform the modeling of information frictions in macroeconomics.

Suggested Citation

  • Heiner Mikosch & Christopher Roth & Samad Sarferaz & Johannes Wohlfart, 2024. "Uncertainty and Information Acquisition: Evidence from Firms and Households," American Economic Journal: Macroeconomics, American Economic Association, vol. 16(2), pages 375-405, April.
    • Handle: RePEc:aea:aejmac:v:16:y:2024:i:2:p:375-405
    DOI: 10.1257/mac.20220047
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    Citations

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    Cited by:

    1. Sebastian Blesse & Florian Buhlmann & Philipp Heil & Davud Rostam-Afschar, 2025. "Local Policy Misperceptions and Investment: Experimental Evidence from Firm Decision Makers," CESifo Working Paper Series 11855, CESifo.
    2. Francesco Capozza & Ingar Haaland & Christopher Roth & Johannes Wohlfart, 2021. "Studying Information Acquisition in the Field: A Practical Guide and Review," CEBI working paper series 21-15, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).
    3. Ivan Yotzov & Nicholas Bloom & Philip Bunn & Paul Mizen & Gregory Thwaites, 2024. "The Speed of Firm Response to Inflation," Discussion Papers 2425, Centre for Macroeconomics (CFM).
    4. Lukas Hack & Davud Rostam-Afschar, 2025. "Which Macroeconomic News Matters for Price-Setting?," CESifo Working Paper Series 12215, CESifo.
    5. Blesse, Sebastian & Gruendler, Klaus & Heil, Philipp & Hermes, Henning, 2025. "The Demand for Economic Narratives," IZA Discussion Papers 18205, Institute of Labor Economics (IZA).
    6. Andreas Dibiasi & Heiner Mikosch & Samad Sarferaz, 2025. "Uncertainty Shocks, Adjustment Costs, and Firm Beliefs: Evidence from a Representative Survey," American Economic Journal: Macroeconomics, American Economic Association, vol. 17(3), pages 36-73, July.
    7. Link, Sebastian & Peichl, Andreas & Roth, Christopher & Wohlfart, Johannes, 2023. "Information frictions among firms and households," Journal of Monetary Economics, Elsevier, vol. 135(C), pages 99-115.
    8. Helena Antonie Baier & Philipp Lergetporer & Thomas Rittmannsberger, 2025. "Firms’ expectations about skill shortages," Small Business Economics, Springer, vol. 65(2), pages 1095-1112, August.
    9. Calford, Evan M. & Chakraborty, Anujit, 2025. "The value of and demand for diverse news sources," Games and Economic Behavior, Elsevier, vol. 151(C), pages 24-41.
    10. Di Pace, Federico & Mangiante, Giacomo & Masolo, Riccardo M., 2025. "Do firm expectations respond to monetary policy announcements?," Journal of Monetary Economics, Elsevier, vol. 149(C).
    11. Klaus Abberger & Alexander Rathke & Samad Sarferaz & Pascal Seiler, 2025. "Monetary Policy Shocks and Firms' Investment Decisions," CESifo Working Paper Series 12099, CESifo.

    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • E71 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on the Macro Economy
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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