Congratulations to Zidong An who recently had a paper entitled, ‘Expectation formation following pandemic events’, published in theEconomics Letters.This paper was coauthored with Dingqian Liu from Department of Ecconomics, American University and Yuzhheng Wu from School of Applied Economics, Renmin University of China.
Abstract
Previous studies find that the degree of information rigidity is negatively associated with natural disaster shocks, recessions, and high economic uncertainty, suggesting that the expectation formation process is state dependent. Matching a large panel data of macroeconomic forecasts to the pandemic data, this letter shows that the degree of information rigidity declines significantly following pandemic events, confirming that the expectation formation process is also driven by unexpected health shocks.
The paper can be accessed here.
Associate Professor, Distinguished Scholar
