On the long-run neutrality of demand shocks

C-Tier

Journal: Economics Letters

Year: 2016

Volume: 139

Issue: C

Pages: 57-60

Authors (2)

Chen, Wenjuan (not in RePEc) Netšunajev, Aleksei (Tallinna Tehnikaülikool)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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Abstract

We revisit the seminal paper by Blanchard and Quah (1989) and investigate their long-run identification scheme. We use a structural VAR model with smoothly changing covariances for the identification of shocks. Formal testing rejects the long-run neutrality of demand shocks.

On the long-run neutrality of demand shocks

Authors (2)

Abstract

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