The real business cycle literature has largely ignored the empirical question of what role technology shocks actually … play in business cycles. The observed procyclicality of total factor productivity (TFP) does not prove that technology … other reasons. I address the role of technology by investigating the dynamic interactions of inputs, TFP and two observable …

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 …

-equation restrictions. This paper develops and explores policy analysis approaches that are either based on a generalized shock structure …

This paper develops a structural VAR model to measure how a shock to one country can affect the GDP of other countries …. It uses trade linkages to estimate the multiplier effects of a shock as it is transmitted through other countries' output …-trade matrix. For example, due to these output-multiplier effects, a shock to one country can have a large impact on countries that …