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 …

model, a positive money supply shock generates a large drop in the interest rate comparable in magnitude to what we find in …

an expansionary shock to monetary policy. Of these features, the most important are staggered wage contracts of average …

This paper reviews recent research that grapples with the question: What happens after an exogenous shock to monetary … exogenous shock to monetary policy. Nevertheless, there is considerable agreement about the qualitative effects of a monetary … policy shock in the sense that inference is robust across a large subset of the identification schemes that have been …

simple and familiar one. The contraction phase was primarily a consequence of a shock that induced a shift away from … slowness of the recovery from the Depression was due to a shock that increased the market power of workers. We identify a …

advances in model development. Consequently, we conclude that theory is behind, not ahead of, business cycle measurement …

We investigate what happens to hours worked after a positive shock to technology, using the aggregate technology series … computed in Basu, Fernald and Kimball (1999). We conclude that hours worked rise after such a shock …