| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 967229 | Journal of Monetary Economics | 2011 | 17 Pages |
Abstract
⺠A news shock is an expected increase in future TFP observed in advance. ⺠News shocks are identified in a VAR setting using theory-based identification. ⺠Good news leads to falling output, hours and investment; consumption rises. ⺠Dynamic responses to news consistent with predictions of many macro models. ⺠News shocks are a quantitatively important driver of output at medium frequencies.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Robert B. Barsky, Eric R. Sims,