A Theory of Demand Shocks
This paper presents a model of business cycles driven by shocks to consumer expectations regarding aggregate productivity. Agents are hit by heterogeneous productivity shocks, they observe their own productivity and a noisy public signal regarding aggregate productivity. The public signal gives rise...
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| Format: | Article |
| Language: | English |
| Published: |
American Economic Association,
2010-02-24T18:28:51Z.
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| Online Access: | Get fulltext |