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This paper examines the effects of expansionary technology shocks (shocks that increase labor productivity and factor … inputs) as opposed to contractionary technology shocks (shocks that increase labor productivity, but decrease factor inputs … expansionary technology shocks. However, contractionary technology shocks are important to understand the variation in labor …
Persistent link: https://www.econbiz.de/10010336790
This paper uses panel vector autoregressive models and simulations of an estimated DSGE model to explore the reaction of Euro area banks to the global financial crisis. We focus on their interest rate setting behavior in response to standard macroeconomic shocks. Our main empirical finding is...
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Apart from a priori assumptions on instantaneous or long run effects of structural shocks, sign restrictions have become a prominent means for structural vector autoregressive (SVAR) analysis. Moreover, second order heterogeneity of systems of times series can be fruitfully exploited for...
Persistent link: https://www.econbiz.de/10010482469
the price level to a temporary risk shock are permanent. Our theoretical discussion shows that adopting a credible long …
Persistent link: https://www.econbiz.de/10010340556
-run restrictions on a VAR model to disentangle the effects of both shocks. We find that optimism shocks - in line with theory - reduce …
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-specific technology shocks, the relative strength of the intertemporal substitution effect needs to be enhanced for our model to exhibit …
Persistent link: https://www.econbiz.de/10010480670