Barsky, Robert B.; Sims, Eric R. - In: Journal of Monetary Economics 58 (2011) 3, pp. 273-289
This paper proposes and implements a novel structural VAR approach to the identification of news shocks about future technology. The news shock is identified as the shock orthogonal to the innovation in current utilization-adjusted TFP that best explains variation in future TFP. A favorable news...