and data. Second, because the NK model's predictions differ by the nature of the shock, we present evidence on the … procyclical conditional on a technology shock. However, we find that they are either procyclical or acyclical conditional on …

encompasses them, taking advantage of recent developments in the theory and implementation of Bayesian methods. The encompassing …

This paper analyzes the quality of VAR-based procedures for estimating the response of the economy to a shock. We focus … question that has attracted a great deal of attention in the literature: How do hours worked respond to an identified shock? In … all of our examples, as long as the variance in hours worked due to a given shock is above the remarkably low number of 1 …

positive technology shock, and (c) measured productivity increases temporarily in response to a positive demand shock. More …