Cover Image
QR Code

Demand Shocks as Technology Shocks.

We provide a macroeconomic theory where demand for goods has a productive role. A search friction prevents perfect matching between producers and potential customers. Larger demand induces more search, which, in turn, increases GDP and measured total factor productivity (TFP). We embed the product-m...

Full description

Published in:Review of Economic Studies Vol. 93; no. 2; pp. 798 - 833
Main Authors: Bai, Yan, Ríos-Rull, José-Víctor, Storesletten, Kjetil
Format: Article
Published: Oxford University Press / USA Mar2026
Subjects:
Economic demand
Macroeconomics
Consumption (Economics)
Business cycles
Economic shock
Economic efficiency
Bayes' estimation
Online Access:View this record in EBSCOhost