The rational expectations hypothesis is a bedrock of modern macroeconomics. It is often
combined with a strong, complementary hypothesis that all data about the state of the …

Economists, observers, and policy‐makers often emphasize the role of sentiment as a
potential driver of the business cycle. In this paper, we provide three contributions to this …

Starting from 1920, the growing body of research has been focused on the role of
psychological factors in cycle theories. Mainstream macroeconomic models are insufficient …

Our understanding of monetary policy is complicated by an indeterminacy problem: the
same path for the nominal interest rate is consistent with multiple equilibrium paths for …

We develop a method of solving rational expectations models with dispersed information
and dynamic strategic complementarities. In these types of models, the equilibrium outcome …

We analyze the effects of scheduled macroeconomic news on intraday and daily market
sentiment by comparing sentiment on news announcement dates with that on non …

This paper presents a model where business cycles are driven by the confidence shock that
shifts agents' beliefs about others' economic activities. Trade linkages and incomplete …

Using panel data of 2225 firms headquartered in the US, we examine the effects of CEOs'
market sentiment on corporate innovation capacity. We also examine the extent to which …

We study international propagation of both fundamental and non-fundamental shocks in a
global production network model with information frictions. Producers in a sector do not …

This study aims to (1) determine the effect of earnings per share on stock prices,(2)
determine the effect of price-earnings ratio on stock prices,(3 determine the effect of price to …