Mikosch, Heiner et al
Uncertainty and information acquisition: Evidence from firms and households - American Economic Journal: Microeconomics - 16(2), Apr, 2024: p.375-405
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.- Reproduced
https://www.aeaweb.org/articles?id=10.1257/mac.20220047
Macroeconomics, endogenous information acquisition, small open economy, Switzerland, exchange rate fluctuations, information frictions, tailored surveys, firms, households, perceived exposure, information acquisition costs, perceived uncertainty, demand for exchange rate reports, aggregate modeling
Uncertainty and information acquisition: Evidence from firms and households - American Economic Journal: Microeconomics - 16(2), Apr, 2024: p.375-405
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.- Reproduced
https://www.aeaweb.org/articles?id=10.1257/mac.20220047
Macroeconomics, endogenous information acquisition, small open economy, Switzerland, exchange rate fluctuations, information frictions, tailored surveys, firms, households, perceived exposure, information acquisition costs, perceived uncertainty, demand for exchange rate reports, aggregate modeling