shocks changed in 1980. Over the period 1955-1979, an expansionary spending or revenue shock was associated with higher stock … prices. After 1980, the response of stock prices to the same shock became negative. Using a dynamic stochastic general … the fiscal shock. In contrast, endogenous growth mechanisms appear to be weaker in the post-1980 period with positive …

-uncertainty regimes using past fundamental shocks, but an exogenous uncertainty shock still exists. Model estimation un- covers evidence … of state-dependent uncertainty effects. Shock responses significantly vary, depending on the current uncertainty regime … and shock magnitude. In the high (low) SS-uncertainty regime, economic activities decrease (increase) regardless of shock …

innovation to stock return correlation in a vector autoregression are nearly identical to those of a news shock about future …

and employment all rise and then crash) in response to such a news shock, in a standard real business cycle model. However … a welfare-reducing boom-bust cycle in response to a news shock. We explore the possibility that integrating credit …

asset prices in the estimation of a structural NDBC model dramatically affects inference about the main sources of business … future developments in the economy, our results imply that data on asset prices should always be used in the estimation of …