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This paper proposes a structural explanation for a news shock. My hypothesis is that a surprise, research and development sector-specific productivity shock may be identified and labeled as news by prominent empirical research in the literature. To examine this hypothesis, I construct a simple...
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The cyclical behaviour of prices in the U.K. is investigated using a sample of annual observations covering the period 1886 1993. A structural time series model relating consumer prices to output is estimated over four sub-periods. The results indicate that prices were procyclical in the...
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