The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

News Shocks

Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_3057

Abstract

News shocks are shocks that are useful for predicting future fundamentals but do not affect current fundamentals. While the idea of “news shocks” as a driver of economic fluctuations has been present since the early work on business cycles it had been formalized and assessed in the last decade. This entry discusses both the theoretical impact of news shocks on the economy and their empirical relevance for business cycles.

Keywords

Business cycles Shocks Information 

JEL Classification

E13 E20 E32 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  1. 1.University of ZurichDepartment of EconomicsZurichSwitzerland

Section editors and affiliations

  • Garett Jones

There are no affiliations available