NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Sentiments and Aggregate Demand Fluctuations

Jess Benhabib, Pengfei Wang, Yi Wen

NBER Working Paper No. 18413
Issued in September 2012

---- Acknowledgements -----

We are indebted to George-Maria Angeletos, Larry Christiano, John Leahy, Jennifer Lao, Martin Schneider, Michal Lukasz Szkup and Michael Woodford for very enlightening comments. We would like to thank the participants at the conference organized by the International Network on Expectational Cordination at the College de France on June 27-29, 2012 in Paris, and at the Northwestern-Tsinghua Conference on "Financial Frictions, Sentiments and Aggregate Fluctuations" on August 21-24 2012 in Beijing for their valuable insights. In particular, we are grateful for discussions with Gaetano Gaballo which were very helpful. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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