Researcher models business cycle using ‘animal spirits’

The Federal Reserve Bank of San Francisco
Shell Jiang

A working paper from the Federal Reserve Bank of San Francisco tries to incorporate human sentiment into the modelling of real business cycles.

In Real business cycles, animal spirits and stock market valuation, Kevin Lansing uses the Keynesian notion of “animal spirits” to better explain fluctuations in consumer sentiment. This means including a measure of an agent’s subjective expectations. The author includes an “equity sentiment shock” alongside five more typical shock types in a real

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: