Nonresponse Bias in Household Inflation Expectations Surveys

Wed, 01 Jan 2025 00:00:00 +0000

Research question and motivation: Inflation expectations measured from household surveys are central inputs to monetary policy, but roughly half of respondents to the RBNZ Household Inflation Expectations survey decline to answer the quantitative inflation-expectations question. Because these item non-responses are not random across demographic groups, aggregate and subgroup measures derived only from those who answer can be systematically biased. The paper quantifies that non-response bias and proposes a simple, operational method to correct aggregate and subgroup inflation-expectation indices and disagreement measures.

Rennae Cherry | Macro Paper Warehouse

Nonresponse Bias in Household Inflation Expectations Surveys