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- W2518701978 abstract "The literature on belief-driven business cycles treats news and noise as distinct representations of agents' beliefs. We prove they are empirically the same. Our result lets us isolate the importance of purely belief-driven fluctuations. Using three prominent estimated models, we show that existing research understates the importance of pure beliefs. We also explain how differences in both economic environment and information structure affect the estimated importance of pure beliefs. (JEL D83, D84, E12, E23, E32)" @default.
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- W2518701978 date "2018-07-01" @default.
- W2518701978 modified "2023-10-10" @default.
- W2518701978 title "News or Noise? The Missing Link" @default.
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- W2518701978 doi "https://doi.org/10.1257/aer.20170792" @default.
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