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An Analysis of Firms’ Expectations about Activity and Employment

Author

Listed:
  • Nicoletta Pashourtidou

    (Economics Research Centre, University of Cyprus)

  • Andreas Tsiaklis

    (Economics Research Centre, University of Cyprus)

Abstract

This paper uses individual firm data from the Cyprus Business Surveys for the period May 2009 - April 2011 to assess the extent to which expectations about activity and employment stated in a given month agree with realisations reported by the same firms in subsequent Surveys. The results show that the probability of a firm stating expectations that are consistent with future realisations varies systematically with firm-specific characteristics such as size, district and subsector of operation. The heterogeneity in this probability can be viewed as a description of the shocks experienced ex post by different types of firms

Suggested Citation

  • Nicoletta Pashourtidou & Andreas Tsiaklis, 2011. "An Analysis of Firms’ Expectations about Activity and Employment," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 5(1), pages 71-85, June.
    • Handle: RePEc:erc:cypepr:v:5:y:2011:i:1:p:71-85
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    References listed on IDEAS

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