TY  - JOUR
AU  - Beaudry,Paul
AU  - Portier,Franck
TI  - The "News" View of Economic Fluctuations: Evidence from Aggregate Japanese Data and Sectoral U.S. Data
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 11496
PY  - 2005
Y2  - August 2005
UR  - http://www.nber.org/papers/w11496
L1  - http://www.nber.org/papers/w11496.pdf
N1  - Author contact info:
Paul Beaudry
Department of Economics
University of British Columbia
Vancouver, Canada
Tel: 604/822-8624
Fax: 604/822-5915
E-Mail: paulbe@interchange.ubc.ca

Franck Portier
GREMAQ-IDEI
University of Toulouse
Manufacture des Tabacs
21 Allee de Brienne
31000 Toulouse, FRANCE
Tel: fax 05-61-12-8637;  fportier@cict.fr
E-Mail: fportier@cict.fr
M2  - featured in NBER digest on 2005-08-01
AB  - 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.
ER  -