How Do Agricultural Subsectors Respond to Productivity Shocks? Evidence from a Bayesian DSGE Model in Iran

Agricultural Economic Dynamics in a Bayesian DSGE Model for Iran

I ran’s economy is suffering from sharp and persistent economic shocks and agriculture plays an undeniable role in its economic growth and development. The aim of this paper is to study the relative contributions of various macroeconomic shocks to generating fluctuations in Iran’s agriculture sector. To do so, a Dynamic Stochastic General Equilibrium (DSGE) model, emphasizing on the ...

How Do Households Respond to Uncertainty Shocks?

Economic disruptions generally coincide with heightened uncertainty. In the United States, uncertainty increased sharply with the recent housing market crash, financial crisis, deep recession, and uneven recovery. In July 2010 congressional testimony, Federal Reserve Chairman Bernanke described conditions as “unusually uncertain.” The uncertain landscape was also cited as a factor in the slow r...

How Do Households Respond to Income Shocks

How do households respond to income shocks?∗

Commonly used consumption/saving models have radically different implications for households response to income shocks, ranging from the hands-to-mouth model, where consumption bears all the adjustment, to the complete markets model, where wealth bears all the adjustment. In this paper we use the Italian Survey of Household Income and Wealth, which is the only available micro dataset that conta...

How do stock prices respond to fundamental shocks?

We estimate various SVAR models for the US in order to assess the importance of fundamental shocks in explaining stock price movements. The results show that models using real activity variables place more weight on fundamental shocks than models using dividends or earnings. However, according to all models fundamental shocks became substantially less important during the period 1982-2002 if co...

How do oil producers respond to oil demand shocks ? ✯

This paper analyzes the response of international oil producers to demand-induced changes in the real price of oil during 1975–2011. The goal is to disentangle fluctuations in OPEC and non-OPEC production and to derive consistent estimates of the short-run price elasticity of crude oil supply at the country level. I find that oil producers hardly respond to demand shocks within the same month, ...