real activity to a financial uncertainty shock during and in the aftermath of the great recession. We replicate this … estimated framework to quantify the output loss due to the large uncertainty shock that materialized in 2008Q3. We find such a … shock to be able to explain about 60% of the output loss in the 2008-2014 period. The same estimated model unveils the role …

macroeconomic instability caused by the recessionary shock of 2008/2009. Using data from 16,166 manufacturing and business services …

show that these patterns can arise in a model where a financial shock temporarily increases the costs of external finance … substantially when investment falls after a financial shock. I find that this mechanism can account for almost a third of the …

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 …