Ambiguous Economic News and Heterogeneity: What Explains Asymmetric Consumption Responses?

Autor:	Donghoon Yoo, Edgar Silgado-Gómez, Luisa Corrado, Robert Waldmann
Rok vydání:	2018
Předmět:	Consumption (economics) Variable (computer science) InformationSystems_INFORMATIONSTORAGEANDRETRIEVAL Aggregate (data warehouse) Economics Econometrics InformationSystems_MISCELLANEOUS Explanatory power
Zdroj:	SSRN Electronic Journal.
ISSN:	1556-5068
DOI:	10.2139/ssrn.3229227
Popis:	We study information and consumption and whether consumers respond symmetrically to good and bad news. We define a news variable and show that it has explanatory power. We, then, test the hypothesis that consumers react more to bad news than to good news using the PSID to analyze the response of households’ consumption to news about aggregate future income.We find that our news variable helps one predict households’ consumption change and that consumption responses are larger following negative (bad) news than positive (good) news and suggest that observed asymmetric consumption responses could be due to agents’ aversion to ambiguous information.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::a9ca2572f76ac1b6ca4d0d109fc2163c https://doi.org/10.2139/ssrn.3229227 Zobrazit plný text záznamu