Christiano, Lawrence J.; Ilut, Cosmin; Motto, Roberto - 2008
overoptimistic. We find that it is difficult to generate a boom-bust cycle (a period in which stock prices, consumption, investment …-ilut@northwestern.edu
2 Northwestern University, 2003 Sheridan Road, Evanston, IL 60208, USA; e-mail: l-christiano@northwestern.edu;
3 … in which stock prices, consumption, investment and employment all rise
and then crash) in response to such a news shock …