shock in the data causes significant declines in output, consumption, investment, and hours worked. Standard general … stabilizing function because of the zero lower bound. We calibrate our uncertainty shock process using fluctuations in implied …

evidence only because the model assumes an asymptote in the economy's response to an uncertainty shock. In this Reply, we …

three changes to the model—recalibration, a risk-premium shock, and a disaster risk-type shock—to try and restore their …Basu and Bundick (2017) show a second moment intertemporal preference shock creates meaningful declines in output in a … sticky price model with Epstein and Zin (1991) preferences. The result, however, rests on the way they model the shock. If a …

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 …

flexibility in terms of achieving shrinkage. The factor structure enables us to identify an international uncertainty shock by … responses of a set of macroeconomic and financial variables show that an international uncertainty shock exerts large effects on …

shock in the data causes significant declines in output, consumption, investment, and hours worked. Standard general … usual stabilizing function because of the zero lower bound. We calibrate our uncertainty shock process using fluctuations in …