; shock absorber …

is robust across different estimation methods. Moreover, the Markov switching VAR also indicates that the reaction of … macroeconomic variables to the identified shock based on sign restrictions is regime dependent. …

aim of uncovering a single structural parameter, but theory suggests it could differ depending on the shock that drives … exports relative to the response of the exchange rate, conditional on each shock. Our findings suggest that this relationship … differs greatly from one shock to another, where domestic shocks generate a much weaker relationship than global shocks. We …