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-linearized equations of the model. Next, a productivity shock is simulated on the computer so as to tell a "story" about how the economy …
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cost. As a result of impulse responses to a domestic productivity shock, the higher elasticity of substitution between two …
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the Euro Area to assess the macroeconomic consequences of a labor supply shock. Our model incorporates health status in … calibrate the model for the case of Portugal and the rest of the Euro Area. Our simulations show that a labor supply shock … that if the labor supply shock affects both economies, the negative income effect dominates the decreased demand effect for …
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