A speech before the Association for University Business and Economic Research Annual Meeting, University of Memphis, Memphis, Tenn., Oct. 16, 2006

This article was originally presented as a speech at the Association for University Business and Economic Research (AUBER) Annual Meeting, University of Memphis, Memphis, Tennessee, October 16, 2006.

A speech before the Association for University Business and Economic Research Annual Meeting, University of Memphis, Memphis, Tenn., Oct. 16, 2006

How does the additional uncertainty associated with noisy economic data affect business cycle fluctuations? I use a simple variant of the neoclassical growth model to show that the answer depends crucially on the assumed expectation-formation capabilities of agents. Under efficient signal...