Beaudry, Paul and Portier, Franck (2014) News-Driven Business Cycles : Insights and Challenges. Journal of Economic Literature (JEL), 52 (n°4). pp. 993-1074.

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Identification Number : 10.1257/jel.52.4.993


There is a widespread belief that changes in expectations may be an important independent driver of economic fluctuations. The news view of business cycles offers a formalization of this perspective. In this paper we discuss mechanisms by which changes in agents' information, due to the arrival of news, can cause business cycle fluctuations driven by expectational change, and we review the empirical evidence aimed at evaluating their relevance. In particular, we highlight how the literature on news and business cycles offers a coherent way of thinking about aggregate fluctuations, while at the same time we emphasize the many challenges that must be addressed before a proper assessment of the role of news in business cycles can be established

Item Type: Article
Language: English
Date: December 2014
Refereed: Yes
Uncontrolled Keywords: Letting different views, Bayesian DSGE approach, Macroeconomic fluctuations, Production externalities, Technical change
JEL Classification: D83 - Search; Learning; Information and Knowledge; Communication; Belief
D84 - Expectations; Speculations
E13 - Neoclassical
E32 - Business Fluctuations; Cycles
O33 - Technological Change - Choices and Consequences; Diffusion Processes
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 25 Aug 2016 12:35
Last Modified: 02 Apr 2021 15:54
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