NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

Comment on "Whither News Shocks?"

Franck Portier

Chapter in NBER book NBER Macroeconomics Annual 2014, Volume 29 (2015), Jonathan A. Parker and Michael Woodford, editors (p. 265 - 278)
Conference held April 11-12, 2014
Published in July 2015 by University of Chicago Press
© 2015 by the National Bureau of Economic Research
in NBER Book Series NBER Macroeconomics Annual

Barsky, Basu, and Lee (2014) are proposing to identify a technological news shock as the shock that does not affect TFP on impact and maximizes its variance in the short to medium run. In response to this shock, consumption typically rises following good news, but investment, consumer durables purchases and hours worked typically fall on impact. Noticing that this shock indeed moves TFP after one period, I propose ways to identify a technological diffusion news. By diffusion news, I mean that TFP is not affected in the short to medium run but permanently increases. In response to such a shock, the economy does display an aggregate boom with typical business cycles co-movements.

download in pdf format
   (496 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.1086/680626

This chapter is a comment on Whither News Shocks?, Robert B. Barsky, Susanto Basu, Keyoung Lee
Users who downloaded this chapter also downloaded* these:
Christiano Comment on "Whither News Shocks?"
Barsky, Basu, and Lee Whither News Shocks?
Discussion of "Whither News Shocks?"
Lorenzoni Comment on "Information Aggregation in a Dynamic Stochastic General Equilibrium Model"
Chung, Herbst, and Kiley Effective Monetary Policy Strategies in New Keynesian Models: A Reexamination
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

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

Contact Us