Replication data for: A Theory of Demand Shocks

Name	File Type	Size	Last Modified
data			10/12/2019 10:07:AM
LICENSE.txt	text/plain	14.6 KB	10/12/2019 06:07:AM

Project Citation:

Lorenzoni, Guido. Replication data for: A Theory of Demand Shocks. Nashville, TN: American Economic Association [publisher], 2009. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113343V1

Project Description

Summary: 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 to "noise shocks," which have the features of aggregate demand shocks: they increase output, employment, and inflation in the short run and have no effects in the long run. Numerical examples suggest that the model can generate sizable amounts of noise-driven volatility. (JEL D83, D84, E21, E23, E32)

Scope of Project

JEL Classification:
      D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
      D84 Expectations; Speculations
      E21 Macroeconomics: Consumption; Saving; Wealth
      E23 Macroeconomics: Production
      E32 Business Fluctuations; Cycles

Related Publications

Download this project

Published Versions

V1 [2019-10-12]

Export Metadata

Dublin Core

DDI 2.5

Report a Problem

Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.

This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.