A0212
Title: Public investment news shocks: A text-based index
Authors: Etsuro Shioji - Chuo University (Japan) [presenting]
Abstract: News regarding future public investment enters the private sector information set well in advance of policy implementation. Failing to consider this could lead to an inaccurate measurement of the policy's impact. The purpose is to develop a method to construct a public investment news indicator through text analysis of newspaper articles. The method is applied to the case of Japan. The resulting index is used as an external instrument to estimate the impact of a public investment news shock on the aggregate economy.
