This paper estimates a firm-specific capital DSGE model. Firm-specific capital improves the fit of DSGE models to the …

We estimate a two-sector DSGE model with financial intermediaries—a-la Gertler and Karadi 2011) and Gertler and … results indicate a significant role of financial market news as a predictive force behind fluctuations. Specifically, news … intermediation is essential for the importance and propagation of these valuation shocks. Importantly, valuation news shocks generate …

Kiyotaki (2010)—and quantify the importance of news shocks in accounting for aggregate and sectoral fluctuations. Our results … indicate a significant role of financial market news as a predictive force behind fluctuations. Specifically, news about the … frequencies. Importantly, asset value news shocks generate both aggregate and sectoral co-movement with a standard preference …

We develop a two-sector DSGE model with financial intermediation to investigate the role of news as a driving force of … the business cycle. We find that news about future capital quality is a significant source of aggregate fluctuations … and propagation of capital quality shocks. In addition, news shocks in capital quality generate aggregate and sectoral …

We estimate a two-sector DSGE model with financial intermediaries—a-la Gertler and Karadi 2011) and Gertler and … results indicate a significant role of financial market news as a predictive force behind fluctuations. Specifically, news … intermediation is essential for the importance and propagation of these valuation shocks. Importantly, valuation news shocks generate …