Aggregate Shocks or Aggregate Information? Costly Information and Business Cycle Comovement
---- Acknowledgements ----
We thank Susanto Basu and John Fernald for help with data. Thanks to Diego Comin, Stijn Van Nieuwerburgh, Lucrezia Reichlen, Mirko Wiederholt, Linyan Yang and participants at Princeton, NYU, MIT, NY Fed, Gerzensee Swiss National Bank conference, NBER ME and SED meetings for helpful comments. Veldkamp thanks Princeton Universityâ€™s Kenen fellowship for financial support and Wolfers thanks the Mack Center for Technological Innovation for support while completing this research. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.