We incorporate learning in a standard dynamic stochastic general equilibrium model along two empirically-supported dimensions. First, we assume that agents cannot directly observe the individual components of the productivity shock and instead must conduct signal extraction exercises and update...

In this paper, we re-examine the recent evidence that technology shocks do not produce business cycle patterns in the data. We first extend Gal¡'s (1999) work, which uses long-run restrictions to identify technology shocks, by examining whether the identified shocks can be plausibly interpreted...

In this paper, we re-examine the recent evidence that technology shocks do not produce business cycle patterns in the data. We first extend Gal¡'s (1999) work, which uses long-run restrictions to identify technology shocks, by examining whether the identified shocks can be plausibly interpreted...