suggest that the shock processes play a crucial role in helping to match the data. -- DSGE models ; model evaluation …

framework starts by discerning driving forces set in motion by the initial shock. These are higher discounts applied by decision … institutions. The next step is to study how driving forces influence general equilibrium, both at the time of the initial shock and … later as its effects persist. Some of the effects propagate the effects of the shock---they contribute to poor performance …

-linearized equations of the model. Next, a productivity shock is simulated on the computer so as to tell a "story" about how the economy …

cost. As a result of impulse responses to a domestic productivity shock, the higher elasticity of substitution between two …