Data for Patent-based news shocks

We identify aggregate and industry level patent-based news shocks by exploiting changes in stock market valuations of firms that obtain patent grants. Our shocks resemble diffusion news, as they do not affect total factor productivity in the short run but induce a strong permanent effect after five years.

We find that patent-based news shocks produce positive comovement between consumption, output, investment, and hours. They also generate positive responses in inflation and in the federal funds rate, consistent with standard New Keynesian models.<br><br>Data record consists of raw data in .m and .mat and .tab format, and an accompanying readme file. Further information on specific data can be found in the accompanying readme file.