Title: What's News On Business Cycles

Authors: Stephanie Schmitt-Grohe and 
Martin Uribe

Abstract:
In this paper, we  perform a structural Bayesian estimation of the contribution of news shocks to business cycles in the postwar United States. 
Our theoretical framework is a real-business-cycle model featuring permanent and stationary neutral productivity shocks, permanent  
investment-specific shocks, and government spending shocks.  Each of these shocks is driven by four types of structural innovations:  
unanticipated innovations and innovations anticipated one, two, and  three quarters in advance.