Jul. 27, 2023
Household Inflation Expectation and Consumption :Evidence from Japan
要旨Abstract
We study household inflation expectation and consumption decisions jointly, using the micro-level panel dataset based on household surveys in Japan when nominal interest rates stay at the effective lower bound. We find that a rise in household inflation expectation generally leads to a rise in current consumption relative to future. However, we find that this relation may not be robust in some situations. Specifically, changes in household inflation expectations along with the fluctuation in food and energy prices have a little impact on consumption, whereas changes in their inflation expectations due to other factors have a strong impact. Building a formal model and calibrate its parameters, we show that these results can be interpreted as the household's optimal behavior under imperfect information.
書誌情報Bibliographic information
Vol. 72, No. 3, 2021 , pp. 268-295
HERMES-IR（一橋大学機関リポジトリ）: https://doi.org/10.15057/71970
JEL Classification Codes: E50, E21, E61
