Economics at your fingertips  

News or Noise? The Missing Link

Ryan Chahrour and Kyle Jurado

American Economic Review, 2018, vol. 108, issue 7, 1702-36

Abstract: The literature on belief-driven business cycles treats news and noise as distinct representations of agents' beliefs. We prove they are empirically the same. Our result lets us isolate the importance of purely belief-driven fluctuations. Using three prominent estimated models, we show that existing research understates the importance of pure beliefs. We also explain how differences in both economic environment and information structure affect the estimated importance of pure beliefs.

JEL-codes: D83 D84 E12 E23 E32 (search for similar items in EconPapers)
Date: 2018
Note: DOI: 10.1257/aer.20170792
References: Add references at CitEc
Citations: View citations in EconPapers (42) Track citations by RSS feed

Downloads: (external link) (application/pdf) ... 08vFRGBNcMSeMxnBgj2D (application/zip) ... k9qObiPM2jBXwJFFkQDu (application/pdf) ... 1RdpfGhjskWXNTYg0MsU (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
Working Paper: News or Noise? The Missing Link (2017) Downloads
Working Paper: News or Noise? The Missing Link (2017) Downloads
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:

Ordering information: This journal article can be ordered from

Access Statistics for this article

American Economic Review is currently edited by Esther Duflo

More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().

Page updated 2023-06-15
Handle: RePEc:aea:aecrev:v:108:y:2018:i:7:p:1702-36