… of overreaction to news. We document this finding by studying expectations for a large set of
macro … We then offer a theory of individual overreaction based on diagnostic expectations (…

… In the next section, we show that a resulting pattern of overreaction is indeed present in
important macroeconomic data series. Such facts raise two important questions. First, can we …

… In this analysis, overreaction of long term expectations outperforms conventional measures
of time varying risk premia, emerging as a key and parsimonious driver of key stock market …

… of 22 macroeconomic variables, nd that individual forecasts tend to overreact to information
… embedded in subjective expectations, I focus on investors’ overreaction to information in the …

… macroeconomics focuses on models of expectations featuring underreaction to news.At the
same time, many prominent models in finance exhibit overreaction… under- and overreaction is …

This article presents a dynamic, rational expectations equilibrium model of asset prices
where the drift of fundamentals (dividends) shifts between two unobservable states at random …

… the price expectation updating process. We observe significant price expectation shifts in
the Follow-up study, indicating that homeowners actively monitor the macroeconomic outlook. …

… underreaction and noise in expectations formation in a macroeconomic model. In the end…
expectation theory is a theory of overreaction. However, my model allows for both overreaction …

… But if we take for granted their thesis, we have that macroeconomic forecasts appear to
overreact at the individual level at the same that they appear to underreact at the aggregate level. …

… overreaction by individual professional forecasters, we find overreaction in consensus
expectations … in macroeconomics and finance: overreaction to news, as in models of diagnostic …