Arbeitspapier
How should news shocks be specified under rational expectations?
A number of studies have found that news shocks account for a large part of the aggregate fluctuations of the main macroeconomic variables.We show that when taking rational expectations into consideration there is a limit on the size of the variance of the news shocks,which has not been considered in the literature.We offer an explanation to why this restriction should be imposed and show,with an empirical example from a recent paper,that if you do impose the rational expectations restriction the importance of the news is drastically reduced.
- Sprache
-
Englisch
- Erschienen in
-
Series: Cardiff Economics Working Papers ; No. E2017/7
- Klassifikation
-
Wirtschaft
- Thema
-
News shocks
DSGE
Rational Expectations
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Le, Vo Phuong Mai
Meenagh, David
Minford, Patrick
- Ereignis
-
Veröffentlichung
- (wer)
-
Cardiff University, Cardiff Business School
- (wo)
-
Cardiff
- (wann)
-
2017
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Le, Vo Phuong Mai
- Meenagh, David
- Minford, Patrick
- Cardiff University, Cardiff Business School
Entstanden
- 2017
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