Uncertainty and Information Acquisition: Evidence from Firms and Households

Publikation: Working paperForskning

Standard

Uncertainty and Information Acquisition: Evidence from Firms and Households. / Mikosch, Heiner; Roth, Christopher; Sarferaz, Samad; Wohlfart, Johannes.

2021.

Publikation: Working paperForskning

Harvard

Mikosch, H, Roth, C, Sarferaz, S & Wohlfart, J 2021 'Uncertainty and Information Acquisition: Evidence from Firms and Households'.

APA

Mikosch, H., Roth, C., Sarferaz, S., & Wohlfart, J. (2021). Uncertainty and Information Acquisition: Evidence from Firms and Households. CEBI Working Paper Series Bind 21 Nr. 20

Vancouver

Mikosch H, Roth C, Sarferaz S, Wohlfart J. Uncertainty and Information Acquisition: Evidence from Firms and Households. 2021 dec. 1.

Author

Mikosch, Heiner ; Roth, Christopher ; Sarferaz, Samad ; Wohlfart, Johannes. / Uncertainty and Information Acquisition: Evidence from Firms and Households. 2021. (CEBI Working Paper Series; Nr. 20, Bind 21).

Bibtex

@techreport{5de4380605e44b22955aa66ea7a1b616,
title = "Uncertainty and Information Acquisition: Evidence from Firms and Households",
abstract = "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. First, we show that firms perceive a greater exposure to exchange rate movements than households, which is reflected in higher levels of information acquisition and less dispersed beliefs about past and future exchange rate realizations. Similarly, within the two samples, acquisition of exchange rate information strongly increases in various proxies for stake size. Second, households who perceive higher costs of acquiring or processing information acquire less information. Finally, an exogenous increase in the perceived uncertainty of the exchange rate increases firms{\textquoteright} demand for a report about exchange rate developments, but not households{\textquoteright}. Our findings inform the modeling of information frictions in macroeconomics.",
keywords = "Det Samfundsvidenskabelige Fakultet, Information Acquisition, Uncertainty, Stake Size, Firms, Households",
author = "Heiner Mikosch and Christopher Roth and Samad Sarferaz and Johannes Wohlfart",
year = "2021",
month = dec,
day = "1",
language = "Dansk",
series = "CEBI Working Paper Series",
number = "20",
type = "WorkingPaper",

}

RIS

TY - UNPB

T1 - Uncertainty and Information Acquisition: Evidence from Firms and Households

AU - Mikosch, Heiner

AU - Roth, Christopher

AU - Sarferaz, Samad

AU - Wohlfart, Johannes

PY - 2021/12/1

Y1 - 2021/12/1

N2 - 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. First, we show that firms perceive a greater exposure to exchange rate movements than households, which is reflected in higher levels of information acquisition and less dispersed beliefs about past and future exchange rate realizations. Similarly, within the two samples, acquisition of exchange rate information strongly increases in various proxies for stake size. Second, households who perceive higher costs of acquiring or processing information acquire less information. 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.

AB - 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. First, we show that firms perceive a greater exposure to exchange rate movements than households, which is reflected in higher levels of information acquisition and less dispersed beliefs about past and future exchange rate realizations. Similarly, within the two samples, acquisition of exchange rate information strongly increases in various proxies for stake size. Second, households who perceive higher costs of acquiring or processing information acquire less information. 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.

KW - Det Samfundsvidenskabelige Fakultet

KW - Information Acquisition

KW - Uncertainty

KW - Stake Size

KW - Firms

KW - Households

M3 - Working paper

T3 - CEBI Working Paper Series

BT - Uncertainty and Information Acquisition: Evidence from Firms and Households

ER -

ID: 287823690