Fredrik N G Andersson
Associate professor
Inflation illiteracy - a micro-data analysis
Author
Summary, in English
Using micro-level survey data from the National Institute of Economic
Research’s Economic Tendency Survey, we find that a relatively large
share of Swedish households is ill-informed about the rate of inflation in
the economy, with perceived and expected rates of inflation deviating
substantially from official measures. Probit analysis of the data indicates
that such inflation illiteracy is related to respondent characteristics,
including income, education and sex. Finally, we show that the treatment
of extreme-value answers has a substantial effect on the aggregated time
series typically reported and discussed.
Research’s Economic Tendency Survey, we find that a relatively large
share of Swedish households is ill-informed about the rate of inflation in
the economy, with perceived and expected rates of inflation deviating
substantially from official measures. Probit analysis of the data indicates
that such inflation illiteracy is related to respondent characteristics,
including income, education and sex. Finally, we show that the treatment
of extreme-value answers has a substantial effect on the aggregated time
series typically reported and discussed.
Department/s
- Department of Economics
Publishing year
2023-03-08
Language
English
Pages
106-119
Publication/Series
Sveriges Riksbank Economic Review
Volume
2023
Issue
2
Links
Document type
Journal article
Topic
- Economics
Keywords
- inflation expectations
- survey data
- inflation illiteracy
Status
Published
ISBN/ISSN/Other
- ISSN: 2001-029X