We construct shock elasticities that are pricing counterparts to impulse response functions. Recall that impulse … response functions measure the importance of next-period shocks for future values of a time series. Shock elasticities measure … the contributions to the price and to the expected future cash flow from changes in the exposure to a shock in the next …

We use survey evidence on reported spending in hypothetical energy price shock scenarios to study novel features of the … several nonlinearities depending on the sign and magnitude of the energy price shock that are economically relevant, including …