Publication Year: within 25 Years / Topic: Information

Author:: Jane Kim
Publication Date:: 04-2012
Content Type:: Journal Article
Journal:: Joint U.S.-Korea Academic Studies
Institution:: Korea Economic Institute of America (KEI)
Abstract:: When the Internet became accessible to the international public in the 1990’s, it forever revolutionized the way people exchange information and communication. Demands for connection to the virtual world spurred global economic growth as new firms emerged to supply wanted products and services. And as commercial transactions became possible online, the Internet transformed into a legitimate economy, enticing highly authoritarian regimes such as China and Cuba.
Topic:: Authoritarianism, Internet, Economic Growth, Cyberspace, Telecommunications, and Information
Political Geography:: Asia and North Korea

Author:: Olivier Blanchard, Jean-Paul L'Huillier, and Guido Lorenzoni
Publication Date:: 10-2012
Content Type:: Working Paper
Institution:: Institute for Advanced Development Studies (INESAD)
Abstract:: We explore empirically models of aggregate fluctuations with two basic ingredients: agents form anticipations about the future based on noisy sources of information and these anticipations affect spending and output in the short run. Our objective is to separate fluctuations due to actual changes in fundamentals (news) from those due to temporary errors in agents’ estimates of these fundamentals (noise). We use a simple forward-looking model of consumption to address some methodological issues: structural VARs cannot be used to identify news and noise shocks in the data, but identification is possible via a method of moments or maximum likelihood. Next, we use U.S. data to estimate both our simple model and a richer DSGE model with the same information structure. Our estimates suggest that noise shocks play an important role in short-run consumption fluctuations.
Topic:: News Analysis, Business, and Information
Political Geography:: Global Focus

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