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How do firms adjust their output, inventories, employment and capital in response to demandsideshocks? To understand this, we estimate a reduced-form model using firm-level panel dataand we construct a theoretical model that can match the estimated impulse-response functions.A combination of...
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pandemic wave) was associated with declines in consumption (-1.9%), investment (-1.2%), output (-2.4%), and productivity (-1 …
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