News about Aggregate Demand and the Business Cycle

We show that a one-sector real business cycle model with variable capital utilization and mild increasing returns-to-scale is able to generate qualitatively as well as quantitatively realistic aggregate fluctuations driven by news shocks to future consumption demand. In sharp contrast to many studies in the existing expectations-driven business cycle literature, our results do not rely on non-separable preferences or investment adjustment costs.

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Year of publication:	2012-01
Authors:	Guo, Jang-Ting ; Weder, Mark ; Sirbu, Anca-Ioana
Institutions:	School of Economics, University of Adelaide
Subject:	News Shocks \| Aggregate Demand \| Business Cycles

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Extent:	application/pdf
Series:	School of Economics Working Papers.
Type of publication:	Book / Working Paper
Notes:	Number 2012-01 16 pages
Classification:	E32 - Business Fluctuations; Cycles
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010897245