News Driven Business Cycles: Insights and Challenges

Franck Portier () and Paul Beaudry

No 9624, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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.

Keywords: Business cycles; Expectations; News; Pigou; Recessions (search for similar items in EconPapers)
JEL-codes: E3 (search for similar items in EconPapers)
Date: 2013-09
New Economics Papers: this item is included in nep-bec and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

Downloads: (external link)
https://cepr.org/publications/DP9624 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

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:cpr:ceprdp:9624

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP9624

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().