Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7358854 | Journal of Economic Dynamics and Control | 2018 | 33 Pages |
Abstract
The major boom-bust period of 1997-2003 is commonly viewed as an expectations-driven episode in which overly optimistic expectations about information and communications technology were followed by their downward revision. This paper employs a novel approach to identifying the news shocks of this period that restricts the identified shock to have its maximal three-year moving average of realizations in the 1997-1999 boom period, followed by a negative average in the bust period. I provide robust evidence that this shock raises output, hours, investment, and consumption, and accounts for the majority of their business cycle variation.
Related Topics
Physical Sciences and Engineering
Mathematics
Control and Optimization
Authors
Nadav Ben Zeev,