Measurement error in general equilibrium: The aggregate effects of noisy economic indicators

Journal of Monetary Economics

Volumn 48, Issue 3, 2001, Pages 585-603

  Bomfim, Antulio N ^a  

^a Division of Monetary Affairs   (United States)

Author keywords

Bounded rationality; C61; Cyclical volatility; D84; E32; Production externalities; Signal extraction

Indexed keywords

EID: 0042409459     PISSN: 03043932     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0304-3932(01)00083-6     Document Type: Article

References (29)

1. Basu S., Fernald J. Are apparent productive spillovers a figment of specification error? Journal of Monetary Economics. 36:1995;165-188.
2. Basu S., Fernald J. Returns to scale in U.S. production: estimates and implications. Journal of Political Economy. 105:1997;249-283.
3. Baxter, M., King, R., 1991. Productive externalities and business cycles. Working paper, University of Rochester.
4. Blanchard O., Kahn C. The solution of linear difference models under rational expectations. Econometrica. 48:1980;1305-1311.
5. Bomfim, A., 1999. Do noisy data exacerbate cyclical volatility? Finance and Economics Discussion Series # 1999-50, Federal Reserve Board.
6. BusinessWeek, 1994. The real truth about the economy. BusinessWeek, November 7 1994, pp. 209-225.
7. Caballero, R.J., Lyons, R.K., 1989. The role of external economies in U.S. manufacturing. NBER Working paper No. 3033.
8. Caballero R.J., Lyons R.K. External effects in U.S. procyclical productivity. Journal of Monetary Economics. 29:1992;209-225.
9. Cogley T., Nason J. Output dynamics in real-business-cycle models. American Economic Review. 85:1995;492-511.
10. Cooper R., Haltiwanger J. Evidence on macroeconomic complementarities. Review of Economics and Statistics. 78:1996;78-93.
11. Cooper R., John A. Coordinating coordination failures in Keynesian models. Quarterly Journal of Economics. 103:1988;441-463.
12. Diebold, F., Rudebusch, G., 1988. Stochastic properties of revisions in the index of leading indicators. In: Proceedings of the Business and Economic Statistics Section. American Statistical Association, 712-717.
13. Diebold F., Rudebusch G. Forecasting output with the composite leading index: a real-time analysis. Journal of the American Statistical Association. 86:1991;603-610.
14. Hall R. Market structure and macroeconomic fluctuations. Brookings Papers on Economic Activity. 2:1987;285-322.
15. Kasa, K., 1996. Signal extraction and the propagation of business cycles. Working paper, Federal Reserve Bank of San Francisco.
16. Kennedy J. An analysis of revisions to the industrial production index. Applied Economics. 25:1993;213-219.
17. King R.G., Plosser C., Rebelo S. Production, growth and business cycles: 1. The basic neoclassical model. Journal of Monetary Economics. 21:1988;195-232.
18. King, R.G., Plosser, C., Rebelo, S., 1990. Production, growth and business cycles: technical appendix. Working paper, Rochester Center for Economic Research, University of Rochester.
19. King R.G. Quantitative theory and econometrics. Federal Reserve Bank of Richmond Economic Quarterly. 81:1995;53-105.
20. Kydland F., Prescott E. Time to build and aggregate fluctuations. Econometrica. 50:1982;1345-1370.
21. Kydland F., Prescott E. The computational experiment: an econometric tool. Journal of Economic Perspectives. 10:1996;69-85.
22. Mankiw N.G., Runkle D., Shapiro M. Are preliminary announcements of money stock rational forecasts? Journal of Monetary Economics. 14:1984;15-27.
23. Mankiw N.G., Shapiro M. News or noise: an analysis of GNP revisions. Survey of Current Business. 66:1986;20-25.
24. Oh S., Waldman M. The macroeconomic effects of false announcements. Quarterly Journal of Economics. 105:1990;1015-1034.
25. Oh, S., Waldman, M., 1995. The U.S. government's index of leading economic indicators as a source of expectational shocks. Working paper, Cornell University.
26. Orphanides, A., 1998. Monetary policy evaluation with noisy information. Finance and Economics Discussion Series # 1998-50, Federal Reserve Board.
27. Orphanides, A., Porter, R., Reifschneider, D., Tetlow, R., Finan, F., 1999. Errors in the measurement of the output gap and the design of monetary policy. Finance and Economics Discussion Series # 1999-45, Federal Reserve Board.
28. Prescott E. Theory ahead of business cycle measurement. Federal Reserve Bank of Minneapolis Quarterly Review. 10:1986;9-22.
29. Taylor J. Discretion versus policy rules in practice. Carnegie-Rochester Series on Public Policy. 39:1993;195-214.