EconPapers    
Economics at your fingertips  
 

Nominal Rigidities and News-Driven Business Cycles in a Medium-Scale DSGE Economy

Kengo Nutahara

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: A news-driven business cycle is a positive comovement of consumption, output, labor, and investment from the news about the future. It is well-known that the standard real business cycle model cannot generate it. In this paper, we show that nominal rigidities, especially sticky prices, can cause it in an estimated medium-scale DSGE economy. We also find that sticky wages cannot cause it in our economy.

New Economics Papers: this item is included in nep-cba, nep-dge and nep-mac
Date: 2010-12
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
https://www.rieti.go.jp/jp/publications/dp/10e061.pdf (application/pdf)

Related works:
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:eti:dpaper:10061

Access Statistics for this paper

More papers in Discussion papers from Research Institute of Economy, Trade and Industry (RIETI) Contact information at EDIRC.
Bibliographic data for series maintained by MATSUKURA, Taeko ().

 
Page updated 2018-12-02
Handle: RePEc:eti:dpaper:10061