AEAweb: Journal Article Full-Text Access
Note to Institutional Subscribers: If you normally access AEAweb journal content via your university or firm's subscription and receive this page, please click
here. The most likely causes of this are a recently changed IP address, a new subscription, or the renewal of a lapsed institutional subscription. This page will stop appearing on the next synchronisation of the document delivery and authentication systems.
You may also click here for pay-per-view, Athens login and other access options .
AEA Members, please click the button below to access the login form:
Jaimovich, Nir, and
Sergio Rebelo. 2009. "Can News about the Future Drive the Business Cycle?."
,
99(4): 1097-1118.
Show Article Details
DOI: 10.1257/aer.99.4.1097
Abstract:Aggregate and sectoral comovement are central features of business cycles, so
the ability to generate comovement is a natural litmus test for macroeconomic
models. But it is a test that most models fail. We propose a unified model that
generates aggregate and sectoral comovement in response to contemporaneous
and news shocks about fundamentals. The fundamentals that we consider are
aggregate and sectoral total factor productivity shocks as well as investment-specific
technical change. The model has three key elements: variable capital
utilization, adjustment costs to investment, and preferences that allow us to
parameterize the strength of short-run wealth effects on the labor supply. (JEL
E13, E20, E32)
Additional links:
Download Data Set
Authors:
Jaimovich, Nir (Stanford U)
Rebelo, Sergio (Northwestern U)
JEL Classifications:
E13: General Aggregative Models: Neoclassical
E20: Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data)
E32: Business Fluctuations; Cycles
If you are an AEA member and do not have an AEAweb login, please
click here.
If you would like to become an AEA member, please see our
membership page.
If you arrived at this page via a journal article link, you will be redirected to the pdf after successful login.
If your first login attempt fails, and you have recently signed up for access or have recently changed your password, you may need to wait a few moments and try again.
Please contact us at
notify@aeaweb.org with any problems or questions.
Contents of Current Issues
June 2013 AER
Spring 2013 JEP
May 2013 AEJ: Policy
May 2013 AEJ: Micro
April 2013 AEJ: Macro
April 2013 AEJ: Applied
March 2013 JEL
Virtual Field Journals
In the News:
An article in the Journal of Economic Perspectives entitled, "The Growth of Finance" by Harvard Business School professors, Robin Greenwood and David Scharfstein, was recently explored by the New York Times and the Wall Street Journal.
U.S. News & World Report cites Princeton-based Burton Malkiel's article in the Journal of Economic Perspectives as a preferred source of "sound financial advice" for investors.
The Huffington Post reports on a study addressing the influence of lifestyle factors on shrinking height in the elderly published in the April issue of AEJ: Applied Economics.
AEA in News Archive
Contact Us
