There is a widespread belief that changes in expectations may be an important independent
driver of economic fluctuations. The news view of business cycles offers a formalization of …

In this review, I look at the recent literature on news as a source of economic fluctuations.
The main question in this literature is: how does the aggregate economy respond to a shock …

We propose a novel identification scheme for a nontechnology business cycle shock, which
we label “sentiment”. This is a shock orthogonal to identified surprise and news TFP shocks …

This paper sheds new light on the interactions between business cycles and the
consumption distribution. We use CEX consumption data and a factor model to characterize …

The focus of this paper is on news-driven business cycles in small open economies. We
make two significant contributions. First, we develop a small open economy model where …

Economic theory offers several explanations as to why shifting expectations about future
economic activity affect current demand. Abstracting from whether changes in expectations …

International business (IB) research has evolved substantially over the past four decades
incorporating new concerns and theoretical contributions. During the past two decades, the …

This paper investigates the sources of the current account (CA) imbalances experienced
within the euro area periphery (Greece, Ireland, Portugal and Spain) before the Great …

News shocks work through changes in expectations, so data on expectations contain
important information for identification of news shocks. We demonstrate this by estimating a …

We explore shocks to expected future productivity in a model with limited enforcement of
financial contracts. A microfounded collateral constraint implies that good news about future …