investment sectors that has variances 10,000 fold smaller than in the standard RBC TFP shock. Simulated moments are compared to …For US postwar data, the paper explains central consumption, labor, investment and output correlations and volatilities … along with output growth persistence by including a human capital investment sector and a variable physical capital …

shock to the sector - a measure of the systemic risk of each sector. Tail centrality is theoretically and empirically very …

equilibrium model with where fluctuations are demand driven. This analysis, thus, brings together real business cycle theory into … closer conformity not only with the prediction of Keynesian theory, but also with actual data …

standard neoclassical models cannot generate a simultaneous increase in consumption, investment, and hours in response to news … shocks, and that optimism in these models tends to reduce investment and hours. When technology is vintage specific, however … optimism raises utilization, consumption, investment, hours, and output. -- Expectations ; News ; Business cycles ; Vintage …

residual as our exogenous shock. Our idea is to quantitatively measure to what extent fluctuations in productivity can account …