Sources of Monetary Growth Uncertainty and Economic Activity: The Time-Varying-Parameter Model with Heteroskedastic Disturbances
A large body of research suggests that uncertainty is an important factor affecting economic activity. Most earlier research, however, fails to consider the possibility that uncertainty may affect the value of new information and economic activity differently, depending upon its source. The author first examines the importance of these different sources for modeling U.S. monetary growth uncertainty. He then empirically relates different sources of monetary growth uncertainty to economic activity measured by real GNP. The results suggest that different sources of uncertainty have different impacts on economic activity. The results tend to confirm predictions arising in the literature on irreversible investment and uncertainty. Copyright 1993 by MIT Press.
Volume (Year): 75 (1993)
Issue (Month): 3 (August)
|Contact details of provider:|| Web page: http://mitpress.mit.edu/journals/|
|Order Information:||Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535|
When requesting a correction, please mention this item's handle: RePEc:tpr:restat:v:75:y:1993:i:3:p:483-92. 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: (Kristin Waites)
If references are entirely missing, you can add them using this form.