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...

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Publicado en:Review of Economic Studies Vol. 93; no. 2; pp. 798 - 833
Autores principales: Bai, Yan, Ríos-Rull, José-Víctor, Storesletten, Kjetil
Formato: Artículo
Publicado: Oxford University Press / USA Mar2026
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Mar2026
      vid: 93
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      pub: Oxford University Press / USA
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        10.1093/restud/rdaf045
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        atl: Demand Shocks as Technology Shocks.
      aug:
        au:
          Bai, Yan
          Ríos-Rull, José-Víctor
          Storesletten, Kjetil
        affil:
          University of Rochester, USA
          University of Pennsylvania, USA
          University of Minnesota, USA
      su:
        Economic demand
        Macroeconomics
        Consumption (Economics)
        Business cycles
        Economic shock
        Economic efficiency
        Bayes' estimation
      sug:
        subj:
          Economic demand
          Macroeconomics
          Consumption (Economics)
          Business cycles
          Economic shock
          Economic efficiency
          Bayes' estimation
      keyword:
        copyrightHolder:Review of Economic Studies Ltd
        copyrightYear:2026
        Demand shocks
        inLanguage:en
        publisher:Oxford University Press
        sameAs:https://dx.doi.org/10.1093/restud/rdaf045
        Shopping frictions
        Technology shocks
        copyrightHolder:Review of Economic Studies Ltd
        copyrightYear:2026
        Demand shocks
        inLanguage:en
        publisher:Oxford University Press
        sameAs:https://dx.doi.org/10.1093/restud/rdaf045
        Shopping frictions
        Technology shocks
      ab: 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-market friction in a standard neoclassical model and estimate it using Bayesian techniques. Business cycles are driven by preference shocks, true technology shocks, and investment-specific shocks. Preference shocks have qualitatively similar effects as true productivity shocks. These shocks account for a large share of the fluctuations in consumption, GDP, and measured TFP and can be identified using shopping time data.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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