News Driven Business Cycles: Insights and Challenges

Paul Beaudry and Franck Portier ()

No 19411, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: E00 E3 (search for similar items in EconPapers)
Date: 2013-09
New Economics Papers: this item is included in nep-bec, nep-dge, nep-hpe and nep-mac
Note: EFG
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

Published as Paul Beaudry & Franck Portier, 2014. "News-Driven Business Cycles: Insights and Challenges," Journal of Economic Literature, American Economic Association, vol. 52(4), pages 993-1074, December.

Downloads: (external link)
http://www.nber.org/papers/w19411.pdf (application/pdf)

Related works:
Journal Article: News-Driven Business Cycles: Insights and Challenges (2014)
Working Paper: News Driven Business Cycles: Insights and Challenges (2014)
Working Paper: News Driven Business Cycles: Insights and Challenges (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:19411

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w19411

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().