Download full text
(643.4Kb)
Citation Suggestion
Please use the following Persistent Identifier (PID) to cite this document:
https://nbn-resolving.org/urn:nbn:de:0168-ssoar-312240
Exports for your reference manager
Rational Forecasts or Social Opinion Dynamics? Identification of Interaction Effects in a Business Climate Survey
[journal article]
Abstract This paper develops a methodology for estimating the parameters of dynamic opinion or expectation formation processes with social interactions. We study a simple stochastic framework of a collective process of opinion formation by a group of agents who face a binary decision problem. The aggregate d... view more
This paper develops a methodology for estimating the parameters of dynamic opinion or expectation formation processes with social interactions. We study a simple stochastic framework of a collective process of opinion formation by a group of agents who face a binary decision problem. The aggregate dynamics of the individuals’ decisions can be analyzed via the stochastic process governing the ensemble average of choices. Numerical approximations to the transient density for this ensemble average allow the evaluation of the likelihood function on the base of discrete observations of the social dynamics. This approach can be used to estimate the parameters of the opinion formation process from aggregate data on its average realization. Our application to a well-known business climate index provides strong indication of social interaction as an important element in respondents’ assessment of the business climate.... view less
Classification
Methods and Techniques of Data Collection and Data Analysis, Statistical Methods, Computer Methods
Applied Psychology
Free Keywords
Business climate; business cycle forecasts; opinion formation; social interactions
Document language
English
Publication Year
2009
Page/Pages
p. 638-655
Journal
Journal of Economic Behavior & Organization, 72 (2009) 2
DOI
https://doi.org/10.1016/j.jebo.2009.07.003
Status
Postprint; peer reviewed
Licence
PEER Licence Agreement (applicable only to documents from PEER project)