Keyword Analysis & Research: transitory shock

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What is the difference between permanent shock and transitory shock?

"Permanent shock" is a shock whose effects on current values of a variable never die out in absolute terms. "Transitory shock" is a shock whose effects gradually die out. Consider the simplest one-lag model $$y_t = beta y_{t-1} + u_t, ;;; y_0 = 0$$

What is the relationship between neutral shocks and productivity?

Positive transitory neutral shocks are associated with an expansion in hours worked; permanent neutral shocks lead to a reduction in hours. There is signi cant autocorrelation in growth rates conditional on a permanent neutral shock, so that much of the eventual rise in productivity is anticipated well in advance.

What is the meaning of transitory?

Definition of transitory. 1 : of brief duration : temporary the transitory nature of earthly joy. 2 : tending to pass away : not persistent.

What is a good sentence for transitory?

Examples of transitory in a Sentence. the transitory nature of earthly pleasures. Recent Examples on the Web. Schultz has passionately launched virtuous, if transitory, initiatives regarding: sustainability, race relations, gun violence, income disparity, economic development, veteran employment, and the budget deficit.

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