Advanced Search
MyIDEAS: Login to save this paper or follow this series

News Driven Business Cycles: Insights and Challenges

Contents:

Author Info

  • Paul Beaudry
  • Franck Portier

Abstract

There is a widespread belief that changes in expectations may be an important independent driver of economic fluctuations. The news view of business cycles offers a formalization of this perspective. In this paper we discuss mechanisms by which changes in agents' information, due to the arrival of news, can cause business cycle fluctuations driven by expectational change, and we review the empirical evidence aimed at evaluating its relevance. In particular, we highlight how the literature on news and business cycles offers a coherent way of thinking about aggregate fluctuations, while at the same time we emphasize the many challenges that must be addressed before a proper assessment of its role in business cycles can be established.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.nber.org/papers/w19411.pdf
Download Restriction: Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html. Free access is also available to older working papers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 19411.

as in new window
Length:
Date of creation: Sep 2013
Date of revision:
Handle: RePEc:nbr:nberwo:19411

Note: EFG
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Phone: 617-868-3900
Email:
Web page: http://www.nber.org
More information through EDIRC

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Nir Jaimovich & Sergio Rebelo, 2007. "News and Business Cycles in Open Economies," Discussion Papers, Stanford Institute for Economic Policy Research 07-016, Stanford Institute for Economic Policy Research.
  2. Lippi, Marco & Reichlin, Lucrezia, 1994. "Diffusion of Technical Change and the Decomposition of Output into Trend and Cycle," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 61(1), pages 19-30, January.
  3. Karel Mertens & Morten Overgaard Ravn, 2011. "Understanding the Aggregate Effects of Anticipated and Unanticipated Tax Policy Shocks," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 14(1), pages 27-54, January.
  4. Karnizova, Lilia, 2010. "News versus sunspot shocks in a New Keynesian model," Economics Discussion Papers, Kiel Institute for the World Economy 2010-15, Kiel Institute for the World Economy.
  5. Oscar Pavlov & Mark Weder, 2013. "Countercyclical Markups and News-Driven Business Cycles," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 16(2), pages 371-382, April.
  6. Karel Mertens & MortenO. Ravn, 2010. "Measuring the Impact of Fiscal Policy in the Face of Anticipation: A Structural VAR Approach," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 120(544), pages 393-413, 05.
  7. Olivier Jean Blanchard & Danny Quah, 1988. "The Dynamic Effects of Aggregate Demand and Supply Disturbances," NBER Working Papers 2737, National Bureau of Economic Research, Inc.
  8. Rodriguez Mora, Jose V. & Schulstad, Paul, 2007. "The effect of GNP announcements on fluctuations of GNP growth," European Economic Review, Elsevier, Elsevier, vol. 51(8), pages 1922-1940, November.
  9. Wohltmann, Hans-Werner & Winkler, Roland C., 2009. "Rational expectations models with anticipated shocks and optimal policy: a general solution method and a new Keynesian example," Economics Working Papers, Christian-Albrechts-University of Kiel, Department of Economics 2009,01, Christian-Albrechts-University of Kiel, Department of Economics.
  10. Perendia, George & Tsoukis, Chris, 2012. "The Keynesian multiplier, news and fiscal policy rules in a DSGE model," Dynare Working Papers 25, CEPREMAP.
  11. Gale, D. & Chamley, C., 1992. "Information Revelation and Strategic Delay in a Model of Investment," Papers, Boston University - Department of Economics 10, Boston University - Department of Economics.
  12. Stéphane Auray & Paul Gomme & Shen Guo, 2013. "Nominal Rigidities, Monetary Policy and Pigou Cycles," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 0, pages 455-473, 05.
  13. Michelle Alexopoulos, 2004. "Read All About it: What happens following a technology shock," 2004 Meeting Papers, Society for Economic Dynamics 56, Society for Economic Dynamics.
  14. Paul Beaudry & Deokwoo Nam & Jian Wang, 2011. "Do mood swings drive business cycles and is it rational?," Globalization and Monetary Policy Institute Working Paper, Federal Reserve Bank of Dallas 98, Federal Reserve Bank of Dallas.
  15. Alok Johri & Christopher Gunn, 2009. "News and knowledge capital," 2009 Meeting Papers, Society for Economic Dynamics 763, Society for Economic Dynamics.
  16. Zheng Liu & Daniel F. Waggoner & Tao Zha, 2010. "Sources of Macroeconomic Fluctuations: A Regime-switching DSGE Approach," Emory Economics, Department of Economics, Emory University (Atlanta) 1002, Department of Economics, Emory University (Atlanta).
  17. Christopher M. Gunn & Alok Johri, 2013. "An Expectations-Driven Interpretation of the "Great Recession"," Carleton Economic Papers, Carleton University, Department of Economics 13-02, Carleton University, Department of Economics.
  18. Benhabib, J. & Farmer, R.E.A, 1991. "Indeterminacy and Increasing Returns," Papers, Cambridge - Risk, Information & Quantity Signals 165, Cambridge - Risk, Information & Quantity Signals.
  19. Blake, Andrew P., 2012. "Equally shocking news," Economics Letters, Elsevier, Elsevier, vol. 117(3), pages 866-869.
  20. Jesus Fernandez-Villaverde & Juan Rubio-Ramirez & Thomas J. Sargent, 2005. "A, B, C's (and D)'s for Understanding VARs," NBER Technical Working Papers, National Bureau of Economic Research, Inc 0308, National Bureau of Economic Research, Inc.
  21. Fabio Milani & Ashish Rajbhandari, 2012. "Expectation Formation and Monetary DSGE Models: Beyond the Rational Expectations Paradigm," Working Papers, University of California-Irvine, Department of Economics 111212, University of California-Irvine, Department of Economics.
  22. Eric M. Leeper & Alexander W. Richter & Todd B. Walker, 2012. "Corrigendum: Quantitative Effects of Fiscal Foresight," American Economic Journal: Economic Policy, American Economic Association, American Economic Association, vol. 4(3), pages 283-283, August.
  23. Stephanie Schmitt‐Grohé & Martín Uribe, 2012. "What's News in Business Cycles," Econometrica, Econometric Society, Econometric Society, vol. 80(6), pages 2733-2764, November.
  24. Guo, Shen, 2007. "Optimal Monetary Policy and Expectation Driven Business Cycles," MPRA Paper 1928, University Library of Munich, Germany.
  25. Eric M. Leeper & Todd B. Walker & Shu-Chun Susan Yang, 2008. "Fiscal Foresight: Analytics and Econometrics," NBER Working Papers 14028, National Bureau of Economic Research, Inc.
  26. Keiichiro Kobayashi & Masaru Inaba, 2006. ""Irrational exuberance" in the Pigou cycle under collateral constraints," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 06015, Research Institute of Economy, Trade and Industry (RIETI).
  27. Mendicino, Caterina & Lambertini, Luisa & Punzi, Maria Teresa, 2010. "Expectations-Driven Cycles in the Housing Market," MPRA Paper 20776, University Library of Munich, Germany.
  28. Kristoffer P. Nimark, 2014. "Man-Bites-Dog Business Cycles," American Economic Review, American Economic Association, American Economic Association, vol. 104(8), pages 2320-67, August.
  29. Phillips, Peter C. B., 1998. "Impulse response and forecast error variance asymptotics in nonstationary VARs," Journal of Econometrics, Elsevier, Elsevier, vol. 83(1-2), pages 21-56.
  30. Keiichiro Kobayashi & Kengo Nutahara, 2007. "Collateralized capital and news-driven cycles," Economics Bulletin, AccessEcon, vol. 5(18), pages 1-9.
  31. Jinnai, Ryo, 2013. "News shocks and inflation," Economics Letters, Elsevier, Elsevier, vol. 119(2), pages 176-179.
  32. André Kurmann & Elmar Mertens, 2013. "Stock prices, news, and economic fluctuations: comment," Finance and Economics Discussion Series, Board of Governors of the Federal Reserve System (U.S.) 2013-08, Board of Governors of the Federal Reserve System (U.S.).
  33. Paul Beaudry & Bernd Lucke, 2009. "Letting Different Views about Business Cycles Compete," NBER Working Papers 14950, National Bureau of Economic Research, Inc.
  34. Hairault, Jean-Olivier & Langot, Francois & Portier, Franck, 1997. "Time to implement and aggregate fluctuations," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 22(1), pages 109-121, November.
  35. Eric M. Leeper & Alexander W. Richter & Todd B. Walker, 2010. "Quantitative Effects of Fiscal Foresight," NBER Working Papers 16363, National Bureau of Economic Research, Inc.
  36. KOBAYASHI Keiichiro & NAKAJIMA Tomoyuki & INABA Masaru, 2007. "Collateral Constraint and News-driven Cycles," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 07013, Research Institute of Economy, Trade and Industry (RIETI).
  37. Jordi Galí, 1993. "Monopolistic competition, business cycles and the composition of aggregate demand," Economics Working Papers, Department of Economics and Business, Universitat Pompeu Fabra 45, Department of Economics and Business, Universitat Pompeu Fabra.
  38. Alejandro Justiniano & Giorgio E. Primiceri & Andrea Tambalotti, 2009. "Investment Shocks and Business Cycles," NBER Working Papers 15570, National Bureau of Economic Research, Inc.
  39. Blanchard, Olivier Jean, 1993. "Consumption and the Recession of 1990-1991," American Economic Review, American Economic Association, American Economic Association, vol. 83(2), pages 270-74, May.
  40. Lanne, Markku & Saikkonen, Pentti, 2010. "Noncausal autoregressions for economic time series," MPRA Paper 32943, University Library of Munich, Germany.
  41. Lilia Karnizova, 2012. "News Shocks, Productivity and the U.S. Investment Boom-Bust Cycle," Working Papers, University of Ottawa, Department of Economics 1201E, University of Ottawa, Department of Economics.
  42. Ippei Fujiwara & Yasuo Hirose & Mototsugu Shintani, 2009. "Can News Be a Major Source of Aggregate Fluctuations? A Bayesian DSGE Approach," Vanderbilt University Department of Economics Working Papers, Vanderbilt University Department of Economics 0921, Vanderbilt University Department of Economics.
  43. Uhlig, H.F.H.V.S., 1999. "What are the Effects of Monetary Policy on Output? Results from an Agnostic Identification Procedure," Discussion Paper, Tilburg University, Center for Economic Research 1999-28, Tilburg University, Center for Economic Research.
  44. Tim Berg, 2012. "Did monetary or technology shocks move euro area stock prices?," Empirical Economics, Springer, Springer, vol. 43(2), pages 693-722, October.
  45. Rod Tyers, 2012. "Japanese Economic Stagnation: Causes and Global Implications," The Economic Record, The Economic Society of Australia, The Economic Society of Australia, vol. 88(283), pages 517-536, December.
  46. Robert J. Barro & Robert G. King, 1982. "Time-Separable Preference and Intertemporal-Substitution Models of Business Cycles," NBER Working Papers 0888, National Bureau of Economic Research, Inc.
  47. Beaudry, Paul & Collard, Fabrice & Portier, Franck, 2011. "Gold rush fever in business cycles," Journal of Monetary Economics, Elsevier, Elsevier, vol. 58(2), pages 84-97, March.
  48. Andrew Mountford & Harald Uhlig, 2009. "What are the effects of fiscal policy shocks?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 24(6), pages 960-992.
  49. Lanne, Markku & Saikkonen, Pentti, 2013. "Noncausal Vector Autoregression," Econometric Theory, Cambridge University Press, Cambridge University Press, vol. 29(03), pages 447-481, June.
  50. William Dupor & M. Saif Mehkari, 2013. "The analytics of technology news shocks," Working Papers, Federal Reserve Bank of St. Louis 2013-036, Federal Reserve Bank of St. Louis.
  51. Smets, Frank & Wouters, Raf, 2007. "Shocks and frictions in US business cycles: a Bayesian DSGE approach," Working Paper Series, European Central Bank 0722, European Central Bank.
  52. Mario Forni & Luca Gambetti & Luca Sala, 2013. "No News in Business Cycles," Working Papers, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University 491, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  53. Mertens, Karel & Ravn, Morten O., 2009. "Empirical Evidence on the Aggregate Effects of Anticipated and Unanticipated U.S. Tax Policy Shocks," CEPR Discussion Papers, C.E.P.R. Discussion Papers 7370, C.E.P.R. Discussion Papers.
  54. Cummins, Jason G & Violante, Giovanni L, 2002. "Investment-Specific Technical Change in the US (1947-2000): Measurement and Macroeconomic Consequences," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3584, C.E.P.R. Discussion Papers.
  55. Christiano, Lawrence & Ilut, Cosmin & Motto, Roberto & Rostagno, Massimo, 2011. "Monetary Policy and Stock Market Booms," Working Papers, Banco Central de Reserva del Perú 2011-005, Banco Central de Reserva del Perú.
  56. Winkler, Roland C. & Wohltmann, Hans-Werner, 2012. "On the (de)stabilizing effects of news shocks," Economics Letters, Elsevier, Elsevier, vol. 114(3), pages 256-258.
  57. Beaudry, Paul & Portier, Franck, 2005. "The "news view" of economic fluctuations: Evidence from aggregate Japanese data and sectoral US data," Journal of the Japanese and International Economies, Elsevier, vol. 19(4), pages 635-652, December.
  58. Fabio Milani & John Treadwell, 2011. "The Effects of Monetary Policy "News" and "Surprises"," Working Papers, University of California-Irvine, Department of Economics 101109, University of California-Irvine, Department of Economics.
  59. Alejandro Justiniano & Giorgio E. Primiceri & Andrea Tambalotti, 2009. "Investment shocks and the relative price of investment," Staff Reports, Federal Reserve Bank of New York 411, Federal Reserve Bank of New York.
  60. Nir Jaimovich & Sergio Rebelo, 2006. "Can News About the Future Drive the Business Cycle?," NBER Working Papers 12537, National Bureau of Economic Research, Inc.
  61. Matteo Iacoviello & Stefano Neri, 2010. "Housing Market Spillovers: Evidence from an Estimated DSGE Model," American Economic Journal: Macroeconomics, American Economic Association, American Economic Association, vol. 2(2), pages 125-64, April.
  62. Lawrence J. Christiano & Martin Eichenbaum & Robert J. Vigfusson, 2003. "The response of hours to a technology shock: evidence based on direct measures of technology," International Finance Discussion Papers, Board of Governors of the Federal Reserve System (U.S.) 790, Board of Governors of the Federal Reserve System (U.S.).
  63. Guido Lorenzoni, 2011. "News and Aggregate Demand Shocks," Annual Review of Economics, Annual Reviews, Annual Reviews, vol. 3(1), pages 537-557, 09.
  64. Hashmat Khan & John Tsoukalas, 2009. "The Quantitative Importance of News Shocks in Estimated DSGE Models," Carleton Economic Papers, Carleton University, Department of Economics 09-07, Carleton University, Department of Economics, revised 22 May 2012.
  65. Walentin, Karl, 2009. "Expectation Driven Business Cycles with Limited Enforcement," Working Paper Series, Sveriges Riksbank (Central Bank of Sweden) 229, Sveriges Riksbank (Central Bank of Sweden), revised 01 Oct 2011.
  66. Beaudry, Paul & Portier, Franck, 2007. "When can changes in expectations cause business cycle fluctuations in neo-classical settings?," Journal of Economic Theory, Elsevier, Elsevier, vol. 135(1), pages 458-477, July.
  67. Nadav Ben Zeev & Hashmat U. Khan, 2012. "Investment-Specific News Shocks and U.S. Business Cycles," Carleton Economic Papers, Carleton University, Department of Economics 12-05, Carleton University, Department of Economics, revised 25 Feb 2013.
  68. Lucke, Bernd & Haertel, Thomas, 2008. "Do News Shocks Drive Business Cycles? Evidence from German Data," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, Kiel Institute for the World Economy, vol. 2(10), pages 1-21.
  69. Guo, Jang-Ting & Sirbu, Anca-Ioana & Suen, Richard M. H., 2010. "On Expectations-Driven Business Cycles in Economies with Production Externalities: A Comment," MPRA Paper 24989, University Library of Munich, Germany.
  70. Luisa Lambertini & Caterina Mendicino & Maria Tereza Punzi, 2011. "Leaning Against Boom-Bust Cycles in Credit and Housing Prices," Working Papers, Banco de Portugal, Economics and Research Department w201108, Banco de Portugal, Economics and Research Department.
  71. Sorge, Marco M., 2012. "News shocks or parametric indeterminacy? An observational equivalence result in linear rational expectations models," Economics Letters, Elsevier, Elsevier, vol. 114(2), pages 198-200.
  72. Ippei Fujiwara, 2008. "Growth Expectation," IMES Discussion Paper Series, Institute for Monetary and Economic Studies, Bank of Japan 08-E-21, Institute for Monetary and Economic Studies, Bank of Japan.
  73. Pengfei Wang, 2012. "Understanding Expectation‐Driven Fluctuations: A Labor‐Market Approach," Journal of Money, Credit and Banking, Blackwell Publishing, Blackwell Publishing, vol. 44, pages 487-506, 03.
  74. Marco M. Sorge, 2013. "A Note on Information Flows and Identification of News Shocks Models," EERI Research Paper Series EERI RP 2013/08, Economics and Econometrics Research Institute (EERI), Brussels.
  75. Stefano Eusepi & Bruce Preston, 2008. "Expectations, Learning And Business Cycle Fluctuations," CAMA Working Papers 2008-20, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
  76. Munechika Katayama & Kwang Hwan Kim, . "Costly Labor Reallocation, Non-Separable Preferences, and Expectation Driven Business Cycles," Departmental Working Papers, Department of Economics, Louisiana State University 2010-05, Department of Economics, Louisiana State University.
  77. Beaudry, Paul & Portier, Franck, 2004. "An exploration into Pigou's theory of cycles," Journal of Monetary Economics, Elsevier, Elsevier, vol. 51(6), pages 1183-1216, September.
  78. Guido Lorenzoni, 2006. "A Theory of Demand Shocks," NBER Working Papers 12477, National Bureau of Economic Research, Inc.
  79. Greenwood, Jeremy & Hercowitz, Zvi & Huffman, Gregory W, 1988. "Investment, Capacity Utilization, and the Real Business Cycle," American Economic Review, American Economic Association, American Economic Association, vol. 78(3), pages 402-17, June.
  80. Per Krusell & Alisdar McKay, 2010. "News shocks and business cycles," Economic Quarterly, Federal Reserve Bank of Richmond, Federal Reserve Bank of Richmond, issue 4Q, pages 373-397.
  81. Stefan Avdjiev, 2011. "News driven business cycles and data on asset prices in estimated DSGE models," BIS Working Papers 358, Bank for International Settlements.
  82. Paul Beaudry & Franck Portier, 2004. "Stock Prices, News and Economic Fluctuations," NBER Chapters, National Bureau of Economic Research, Inc, in: Enhancing Productivity (NBER-CEPR-TCER-Keio conference) National Bureau of Economic Research, Inc.
  83. Lawrence J. Christiano & Roberto Motto & Massimo Rostagno, 2003. "The Great Depression and the Friedman-Schwartz hypothesis," Proceedings, Federal Reserve Bank of Cleveland, Federal Reserve Bank of Cleveland, pages 1119-1215.
  84. Mario Forni & Domenico Giannone & Marco Lippi & Lucrezia Reichlin, 2007. "Opening the Black Box: Structural Factor Models with Large Cross-Sections," Center for Economic Research (RECent), University of Modena and Reggio E., Dept. of Economics 008, University of Modena and Reggio E., Dept. of Economics.
  85. Jermann, Urban J. & Quadrini, Vincenzo, 2007. "Stock market boom and the productivity gains of the 1990s," Journal of Monetary Economics, Elsevier, Elsevier, vol. 54(2), pages 413-432, March.
  86. Neville Francis & Michael T. Owyang & Jennifer E. Roush & Riccardo DiCecio, 2010. "A flexible finite-horizon alternative to long-run restrictions with an application to technology shock," Working Papers, Federal Reserve Bank of St. Louis 2005-024, Federal Reserve Bank of St. Louis.
  87. Robert B. Barsky & Eric R. Sims, 2012. "Information, Animal Spirits, and the Meaning of Innovations in Consumer Confidence," American Economic Review, American Economic Association, American Economic Association, vol. 102(4), pages 1343-77, June.
  88. Den Haan, Wouter J. & Kaltenbrunner, Georg, 2009. "Anticipated growth and business cycles in matching models," Journal of Monetary Economics, Elsevier, Elsevier, vol. 56(3), pages 309-327, April.
  89. Akito Matsumoto & Pietro Cova & Massimiliano Pisani & Alessandro Rebucci, 2011. "News Shocks and Asset Price Volatility in General Equilibrium," IDB Publications 37398, Inter-American Development Bank.
  90. Greenwood, Jeremy & Hercowitz, Zvi & Krusell, Per, 2000. "The role of investment-specific technological change in the business cycle," European Economic Review, Elsevier, Elsevier, vol. 44(1), pages 91-115, January.
  91. Christopher M. Gunn & Alok Johri, 2013. "Fear of Sovereign Default, Banks, and Expectations-Driven Business Cycles," Carleton Economic Papers, Carleton University, Department of Economics 13-03, Carleton University, Department of Economics.
  92. Paul Beaudry & Martial Dupaigne & Franck Portier, 2011. "Modeling News-Driven International Business Cycles," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 14(1), pages 72-91, January.
  93. Lucia Alessi & Matteo Barigozzi & Marco Capasso, 2007. "A Review of Nonfundamentalness and Identification in Structural VAR Models," LEM Papers Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy 2007/22, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  94. Zeira, Joseph, 1994. "Informational Cycles," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 61(1), pages 31-44, January.
  95. Chen, Kaiji & Song, Zheng, 2009. "Financial Frictions on Capital Allocation: A Transmission Mechanism of TFP Fluctuations," MPRA Paper 15211, University Library of Munich, Germany.
  96. Stefano Eusepi*, 2009. "On expectations-driven business cycles in economies with production externalities," International Journal of Economic Theory, The International Society for Economic Theory, The International Society for Economic Theory, vol. 5(1), pages 9-23.
  97. Matteo Iacoviello, 2005. "House Prices, Borrowing Constraints, and Monetary Policy in the Business Cycle," American Economic Review, American Economic Association, American Economic Association, vol. 95(3), pages 739-764, June.
  98. Keith Sill, 2009. "News about the future and economic fluctuations," Business Review, Federal Reserve Bank of Philadelphia, Federal Reserve Bank of Philadelphia, issue Q4, pages 22-33.
  99. Jordi Galí, 2008. "Introduction to Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework
    [Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Ke
    ," Introductory Chapters, Princeton University Press, Princeton University Press.
  100. Collard, David, 1996. "Pigou and Modern Business Cycle Theory," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 106(437), pages 912-24, July.
  101. Zeira, Joseph, 1987. "Investment as a Process of Search," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 95(1), pages 204-10, February.
  102. Olivier J. Blanchard & Jean-Paul L'Huillier & Guido Lorenzoni, 2013. "News, Noise, and Fluctuations: An Empirical Exploration," American Economic Review, American Economic Association, American Economic Association, vol. 103(7), pages 3045-70, December.
  103. Lawrence J. Christiano & Martin Eichenbaum & Charles L. Evans, 2001. "Nominal rigidities and the dynamic effects of a shock to monetary policy," Working Paper Series, Federal Reserve Bank of Chicago WP-01-08, Federal Reserve Bank of Chicago.
  104. Benjamin Born & Alexandra Peter & Johannes Pfeifer, 2011. "Fiscal News and Macroeconomic Volatility," Bonn Econ Discussion Papers, University of Bonn, Germany bgse08_2011, University of Bonn, Germany.
  105. Valerie A. Ramey, 2009. "Identifying Government Spending Shocks: It's All in the Timing," NBER Working Papers 15464, National Bureau of Economic Research, Inc.
  106. Pietro Cova & Alessandro Rebucci & Akito Matsumoto & Massimiliano Pisani, 2008. "New Shocks, Exchange Rates and Equityprices," IMF Working Papers, International Monetary Fund 08/284, International Monetary Fund.
  107. Sandra Gomes & Caterina Mendicino, 2011. "Housing Market Dynamics: Any News?," Working Papers, Banco de Portugal, Economics and Research Department w201121, Banco de Portugal, Economics and Research Department.
  108. Michael J. Lamla & Sarah M. Lein & Jan-Egbert Sturm, 2007. "News and Sectoral Comovement," KOF Working papers, KOF Swiss Economic Institute, ETH Zurich 07-183, KOF Swiss Economic Institute, ETH Zurich.
  109. Stefano Eusepi & Bruce Preston, 2009. "Labor supply heterogeneity and macroeconomic comovement," Staff Reports, Federal Reserve Bank of New York 399, Federal Reserve Bank of New York.
  110. Karnizova, Lilia, 2010. "The spirit of capitalism and expectation-driven business cycles," Journal of Monetary Economics, Elsevier, Elsevier, vol. 57(6), pages 739-752, September.
  111. Lars Ljungqvist & Thomas J. Sargent, 2004. "Recursive Macroeconomic Theory, 2nd Edition," MIT Press Books, The MIT Press, The MIT Press, edition 2, volume 1, number 026212274x, December.
  112. Barsky, Robert B. & Sims, Eric R., 2011. "News shocks and business cycles," Journal of Monetary Economics, Elsevier, Elsevier, vol. 58(3), pages 273-289.
  113. Lucke, Bernd, 2010. "Identification and overidentification in SVECMs," Economics Letters, Elsevier, Elsevier, vol. 108(3), pages 318-321, September.
  114. Lippi, Marco & Reichlin, Lucrezia, 1993. "The Dynamic Effects of Aggregate Demand and Supply Disturbances: Comment," American Economic Review, American Economic Association, American Economic Association, vol. 83(3), pages 644-52, June.
  115. Frank Smets & Raf Wouters, 2003. "An Estimated Dynamic Stochastic General Equilibrium Model of the Euro Area," Journal of the European Economic Association, MIT Press, MIT Press, vol. 1(5), pages 1123-1175, 09.
  116. Görtz, Christoph & Tsoukalas, John, 2011. "News and Financial Intermediation in Aggregate Fluctuations," MPRA Paper 34113, University Library of Munich, Germany, revised Oct 2011.
  117. V. V. Chari & Patrick J. Kehoe & Ellen R. McGrattan, 2007. "Are structural VARs with long-run restrictions useful in developing business cycle theory?," Staff Report, Federal Reserve Bank of Minneapolis 364, Federal Reserve Bank of Minneapolis.
  118. Schmitt-Grohé, Stephanie & Uribe, Martín, 2012. "What's News in Business Cycles," CEPR Discussion Papers, C.E.P.R. Discussion Papers 8984, C.E.P.R. Discussion Papers.
  119. Bernd Lucke, 2013. "Testing the technology interpretation of news shocks," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 45(1), pages 1-13, January.
  120. Hammad Qureshi, 2009. "News Shocks and Learning-by-doing," Working Papers, Ohio State University, Department of Economics 09-06, Ohio State University, Department of Economics.
  121. Fabio Milani, 2012. "The Modeling of Expectations in Empirical DSGE Models: a Survey," Working Papers, University of California-Irvine, Department of Economics 121301, University of California-Irvine, Department of Economics.
  122. Collard, David A, 1983. "Pigou on Expectations and the Cycle," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 93(37), pages 411-14, June.
  123. Eric Leeper & Todd Walker, 2011. "Information Flows and News Driven Business Cycles," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 14(1), pages 55-71, January.
  124. Banerjee, Abhijit V, 1992. "A Simple Model of Herd Behavior," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 107(3), pages 797-817, August.
  125. Offick, Sven & Wohltmann, Hans-Werner, 2013. "News shocks, nonfundamentalness and volatility," Economics Letters, Elsevier, Elsevier, vol. 119(1), pages 17-19.
  126. Franck Portier, 2006. "Comment 'A "News" View Of Japan'S Lost Decade': Monetary Policy During Japan'S Lost Decade," The Japanese Economic Review, Japanese Economic Association, Japanese Economic Association, vol. 57(2), pages 345-357.
  127. Lilia Karnizova, 2013. "Letting the speculative and the news views of the Japanese business cycle compete," Economics Bulletin, AccessEcon, vol. 33(2), pages 1146-1158.
  128. Fabio Milani & Ashish Rajrhandari, 2012. "Observed Expectations, News Shocks, and the Business Cycle," Working Papers, University of California-Irvine, Department of Economics 121305, University of California-Irvine, Department of Economics.
Full references (including those not matched with items on IDEAS)

Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. News Driven Business Cycles: Insights and Challenges
    by Christian Zimmermann in NEP-DGE blog on 2014-09-10 15:00:34
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Maurizio Bovi, 2014. "Shocks and the Expectations Formation Process. A Tale of Two Expectations," Natural Field Experiments, The Field Experiments Website 00390, The Field Experiments Website.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:19411. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.