Seemingly Irrelevant Events Affect Economic Perceptions and Expectations: The FIFA World Cup 2006 as a Natural Experiment
Series
IZA - Discussion papers
Type
discussion paper
Date Issued
2006-08-01
Author(s)
Dohmen, Thomas
;
Falk, Armin
;
Sunde, Uwe
;
Huffman, David
Abstract
Prominent economic theories have emphasized the role of commonly held perceptions and expectations for determining macroeconomic outcomes. A key empirical question is how such collectively held beliefs are formed. We use the FIFA World Cup 2006 as a natural experiment. We provide direct evidence that seemingly irrelevant events (the outcomes of soccer matches) can systematically affect individual perceptions about economic prospects, both on a personal and economy-wide level.
Language
English
Keywords
expectation formation
sunspots
soccer world cup
macroeconomic outcomes
psychology
HSG Classification
contribution to practical use / society
Refereed
Yes
Publisher
mimeo
Number
2275
Start page
1
End page
16
Pages
16
Subject(s)
Division(s)
Eprints ID
71598