%0 Unpublished work %T Inflation Expectations and Choices of Households %+ Goethe-University Frankfurt am Main %+ Département d'économie (Sciences Po) (ECON) %+ Center for Economic Policy Research (CEPR) %A Vellekoop, Nathanael %A Wiederholt, Mirko %Z We gratefully acknowledge research support from the Research Center SAFE, funded by the State of Hessen initiative for research LOEWE. %8 2019-04 %D 2019 %Z Humanities and Social Sciences/Economics and FinancePreprints, Working Papers, ... %X Do household inflation expectations affect consumption-savings decisions? We link survey data on quantitative inflation expectations to administrative data on income and wealth. We document that households with higher inflation expectations save less. Estimating panel data models with year and household fixed effects, we find that a one percentage point increase in a household's inflation expectation over time is associated with a 250-400 euro reduction in the household's change in net worth per year on average. We also document that households with higher inflation expectations are more likely to acquire a car and acquire higher-value cars. In addition, we provide a quantitative model of household-level inflation expectations. %G English %2 https://sciencespo.hal.science/hal-03878694/document %2 https://sciencespo.hal.science/hal-03878694/file/2019_vellekoop_wiederholt_inflation_expectations_and_choices_of_households.pdf %L hal-03878694 %U https://sciencespo.hal.science/hal-03878694 %~ SHS %~ SCIENCESPO %~ CNRS %~ AO-ECONOMIE %~ USPC %~ ECON-SCPO %~ SCPO_OA %~ SCPO-REPEC