An internal habit can be a source of news-driven business cycles, positive comovements in consumption, labor, investment, and output from the news about the future, whereas an external habit cannot.

It is often assumed that wedges evolve according to VAR(1) in the applications of business cycle accounting (BCA). However, recent research finds that the wedges have no VAR(1) representation in many dynamic stochastic general equilibrium (DSGE) economies, and that there might be a...

We apply business cycle accounting (BCA) to data generated by a representative model with investment wedges. Based on our findings, the criteria of BCA lead us to conclude that models with investment wedges are not promising for modeling business cycles.

Cracks on the surface of civil structures (e.g. pavement sections, concrete structures) progress in several formations and under different deterioration mechanisms. In monitoring practice, it is often that cracking type with its worst damage level is selected as a representative condition state,...