Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/174111
Authors: 
Le, Vo Phuong Mai
Meenagh, David
Minford, Patrick
Year of Publication: 
2016
Series/Report no.: 
Cardiff Economics Working Papers E2016/11
Abstract: 
In this paper we investigate the role of news shocks in aggregate fluctuations by comparing the empirical performance of models with and without the feature of the news shocks. We found a trivial difference between the two models. That is, the model with news shocks explains the variation as well as the alternative. The reason is that the news shocks can only advance the date at which agents know about the changes, but they do not change the stochastic structure of the model.
Subjects: 
Newsshocks
DSGE
VAR
IndirectInference
JEL: 
E2
E3
Document Type: 
Working Paper

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