New Data from Federal Reserve Bank Illuminate Findings in Economics (Patents, News, and Business Cycles): Economics

2025 NOV 12 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- A new study on Economics is now available. According to news reporting from New York City, New York, by NewsRx journalists, research stated, “We exploit information in patent applications to construct an instrumental variable for the identification of technology news shocks that relaxes all the identifying assumptions traditionally used in the literature. The instrument recovers news shocks that have no effect on aggregate productivity in the short-run, but are a significant driver of its trend component.”

Financial support for this research came from Northwestern University.

The news correspondents obtained a quote from the research from Federal Reserve Bank, “The shock prompts a broad-based expansion in anticipation of the future increase in total factor productivity (TFP), with output, consumption, and investment all rising well before any material increase in TFP is recorded. Despite the positive conditional comovements, the shock only accounts for a modest share of fluctuations of macroeconomic aggregates at business cycle frequencies.”

According to the news reporters, the research concluded: “Financial markets price-in news shocks on impact, while most of the macro aggregates respond with some delay.”

This research has been peer-reviewed.

For more information on this research see: Patents, News, and Business Cycles. Review of Economic Studies, 2025. Review of Economic Studies can be contacted at: Oxford Univ Press, Great Clarendon St, Oxford OX2 6DP, England. (Oxford University Press - http://www.oup.com/; Review of Economic Studies - restud.oxfordjournals.org)

Our news journalists report that additional information may be obtained by contacting Silvia Miranda-Agrippino, Federal Reserve Bank, New York, NY 10045, United States. Additional authors for this research include Sinem Hacioglu-Hoke and Kristina Bluwstein.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1093/restud/rdaf086. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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