IQ, Expectations, and Choice

• 成果类型: Article
• 署名作者: D'Acunto, Francesco; Hoang, Daniel; Paloviita, Maritta; Weber, Michael
• 署名单位: Georgetown University; Helmholtz Association; Karlsruhe Institute of Technology; Bank of Finland; University of Chicago
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdac075
• 发表日期: 2023
• 页码: 2292-2325
• 关键词: cognitive-abilities; inflation; experiences; BEHAVIOR; skills; rates

摘要

We use administrative and survey-based micro data to study the relationship between cognitive abilities (IQ), the formation of inflation expectations, and the consumption plans of a representative male population. High-IQ men display 50% lower forecast errors for inflation than other men. High-IQ men, but not others, have consistent inflation expectations and perceptions over time. In terms of choice, only high-IQ men increase their consumption propensity when expecting higher inflation as the consumer Euler equation prescribes. Education levels, income, other expectations, and socio-economic status, although important, do not explain the variation in expectations and choice by IQ. Recent modelling attempts to incorporate boundedly rational agents into macro models do not fully capture all the facts we document. We discuss which dimensions of expectations formation and choice are important for heterogeneous-agents models of household consumption and for the transmission of fiscal and monetary policy.