TY  - RPRT
        AU  - Link, Sebastian
AU  - Peichl, Andreas
AU  - Roth, Christopher
AU  - Wohlfart, Johannes
        TI  - Information Frictions among Firms and Households
        PY  - 2022/Feb/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 15090
        UR  - https://www.iza.org/publications/dp15090
        AB  - We survey samples of German firms and households to document novel stylized facts about the extent of information frictions among the two groups. First, firms' expectations about macroeconomic variables are closer to expert forecasts and less dispersed than households', consistent with higher information frictions among households. Second, the degree of dispersion and the distance from expert forecasts varies more across groups of households than across groups of firms. Third, firms update their policy rate expectations less than households when provided with an expert forecast, consistent with holding stronger priors. Our results have implications for modeling choices, macroeconomic dynamics, and policies. 
        KW  - firms
KW  - expectation formation
KW  - information frictions
KW  - households
KW  - interest rates
        ER  -