NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The "News" View of Economic Fluctuations: Evidence from Aggregate Japanese Data and Sectoral U.S. Data

Paul Beaudry, Franck Portier

NBER Working Paper No. 11496
Issued in August 2005
NBER Program(s):   EFG

This paper uses aggregate Japanese data and sectoral U.S. data to explore the properties of the joint behavior of stock prices and total factor productivity (TFP) with the aim of highlighting data patterns that are useful for evaluating business cycle theories. The approach used follows that presented in Beaudry and Portier [2004b]. The main findings are that (i) in both Japan and the U.S., innovations in stock prices that are contemporaneously orthogonal to TFP precede most of the long run movements in total factor productivity and (ii) such stock prices innovations do not affect U.S. sectoral TFPs contemporaneously, but do precede TFP increases in those sectors that are driving U.S. TFP growth, namely durable goods, and among them equipment sectors.

download in pdf format
   (678 K)

email paper

This paper is available as PDF (678 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w11496

Published: Beaudry, Paul and Franck Portier. "The 'News View' Of Economic Fluctuations: Evidence From Aggregate Japanese Data And Sectoral US Data," Journal of the Japanese and International Economies, 2005, v19(4,Dec), 635-652. citation courtesy of

Users who downloaded this paper also downloaded these:
Beaudry and Portier w10548 Stock Prices, News and Economic Fluctuations
Schmitt-Grohe and Uribe w14215 What's News in Business Cycles
Coibion and Gorodnichenko w16537 Information Rigidity and the Expectations Formation Process: A Simple Framework and New Facts
Barsky, House, and Kimball w9832 Do Flexible Durable Goods Prices Undermine Sticky Price Models?
Barsky and Sims w15049 Information, Animal Spirits, and the Meaning of Innovations in Consumer Confidence
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us