Caballero, Ricardo J.; Engel, Eduardo - 2003
holds for the microeconomic response of some of the most important economic variables, such as investment, labor demand, and … actual response to shocks is less than half as fast as the estimated response. For investment, labor demand and prices, the … to shocks is biased upward by more than 80 percent. While the bias is not as extreme for labor demand and prices, it …
