News Driven Business Cycles: Insights and Challenges

Paul Beaudry and Franck Portier (f.portier@ucl.ac.uk)

No 289, 2014 Meeting Papers from Society for Economic Dynamics

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.

Date: 2014
New Economics Papers: this item is included in nep-bec, nep-dge and nep-mac
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Citations: View citations in EconPapers (181)

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Related works:
Journal Article: News-Driven Business Cycles: Insights and Challenges (2014)
Working Paper: News Driven Business Cycles: Insights and Challenges (2013)
Working Paper: News Driven Business Cycles: Insights and Challenges (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed014:289

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