Abstract Do firearm purchase delay laws reduce aggregate homicide levels? Using variation from a 6-month countrywide gun demand shock in 2012/2013, we show that U.S. states with legislation preventing immediate handgun purchases experienced smaller increases sales. Our findings indicate this is likely driven by comparatively lower among impulsive consumers. We then demonstrate delays also witne...

We study the spread of exogenous demand shocks generated by book reviews featured on the Oprah Winfrey TV show and published in the New York Times through the online co-purchase recommendation network on Amazon.com. We analyze the co-purchase recommendation network on Amazon.com to determine how such exogenous events might affect the demand for books that were not explicitly mentioned in a revi...

As global warming accelerates extreme weather events such as floods, droughts and storms are likely to increase in intensity and frequency. With regard to a highly globalized world economy built on complex supply and value-added chains, this trend will challenge societies locally and globally. Regional production disruptions might induce shock waves that propagate through the global supply netw...

I investigate RDefforts for process innovation in a monopoly with uncertain demand. Two different models are proposed, where either (i) the reservation price is affected by an additive shock and the marginal production cost is increasing, or (ii) a multiplicative shock on the slope of demand combines with a flat marginal production cost. In either case, price-setting behaviour generates a large...

In a structural time series regression model, binary variables have been used to quantify qualitative or categorical quantitative events such as politic and economic structural breaks, regions, age groups and etc. The use of the binary dummy variables is not reasonable because the effect of an event decreases (increases) gradually over time not at once. The simple and basic idea in this paper i...

Under the standard Taylor rule, the demand shocks (such as positive government spending shock or positive export shock) actually ‘crowd out’ private consumption by lowering household disposable income. However, under interest rate peg policy, this kind of demand shocks could actually ‘crowd in’ private consumption. What we mean by ‘crowd in’ effect of the positive demand shocks are that these s...

A small monthly macroeconometric model of the Canadian economy built around three cointegrating relationships linking financial and real variables is estimated over the 1975-2002 period. One of the cointegrating relationships allows the identification of a supply shock as the only shock affecting permanently the stock market and a demand shock leading to important transitory stock market overva...

We use a dynamic factor model to provide a semi-structural representation for 101 quarterly US macroeconomic series. We find that (i) the US economy is well described by a number of structural shocks between two and six. Focusing on the four-shock specification, we identify, using sign restrictions, two non-policy shocks, demand and supply, and two policy shocks, monetary and fiscal. We obtain ...

We study the magnitude and persistence of the diffusion of exogenous demand shocks on an ecommerce recommendation network. The demand shocks are generated by book reviews on the Oprah Winfrey Show and in the NYTimes, and the recommendation network is generated by Amazon’s copurchase network. We find a strikingly high level of diffusion of exogenous shock through such networks. Neighboring books...