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 …

This paper investigates the response of real wages and hours worked to an exogenous shock in fiscal policy. We identify … this shock with the dynamic response of government purchases and tax rates to an exogenous increase in military purchases …

technology shock measures. We argue that the properties of technology shocks for the manufacturing sector are quite different …

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 …

response to such a shock, employment, output, and nonresidential investment rise, while real wages, residential investment, and …

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 …