Fujiwara, Ippei; Hirose, Yasuo; Shintani, Mototsugu - Vanderbilt University Department of Economics - 2009
We examine whether the news shocks, as explored in Beaudry and Portier(2004), can be a major source of aggregate fluctuations. For this purpose, we extend a standard dynamic stochastic general equilibrium model of Christiano, Eichenbaum, and Evans (2005), and Smets and Wouters (2003, 2007) by...