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Determinants of Professional Forecasting

Study ID sspp-2025-0048-v1

General Details

Project Determinants of Professional Forecasting
Study ID sspp-2025-0048-v1
Study Title Determinants of Professional Forecasting
Authors Lukas Hack, Lora Pavlova, Davud Rostam-Afschar
Completion Time 15 Minutes
Close Date (UTC) Feb. 28, 2026
Discipline Economics, Psychology, Political Science, Sociology, Management, Public Policy
Field Applied Econometrics, Financial Economics, Macroeconomics, Monetary Economics, Experimental Economics, Social Psychology, Cognitive Psychology, Collective Behavior, Experimental Psychology, Behavioral Insights, Behavioral Science, Behavioral Economics
Country Germany
Abstract
We study how information about the distribution of peers’ forecasts affects professional forecasters’ own predictions. Using the Finanzmarkttest (FMT) survey of financial market experts, conducted monthly by ZEW Mannheim, we implement an information provision experiment. Participants provide quarterly GDP growth forecasts for Germany. A randomly selected subset (treatment group) receives information about the actual share of forecasters whose previous forecast was lower than their own. This allows us to causally identify whether forecasters adjust their expectations in response to information about the forecast distribution, revealing strategic and behavioral motives in professional forecasting.


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Citation
Hack, Lukas, Pavlova, Lora, and Davud Rostam-Afschar. 2025. "Determinants of Professional Forecasting." Social Science Prediction Platform. October 30. https://socialscienceprediction.org/s/axf242

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