Uncertainty Shocks in a Model of Effective Demand
---- Acknowledgements ----
We thank the editor and four referees for extremely helpful comments. Discussions with Nick Bloom, David Chapman, Fabio Ghironi, Jos´e Mustre-del-R´ıo, Taisuke Nakata, Julio Rotemberg, A. Lee Smith, Stephen Terry, ChristinaWang, and Jonathan Willis improved the paper substantially. We thank our formal discussants, Robert Barro, Francois Gourio, Liam Graham, Cosmin Ilut, and Johannes Pfeifer for their insights, and Johannes Pfeifer for pointing out an error in a previous draft. We have benefited from comments made by participants at various conferences and seminars. We thank Trenton Herriford for excellent research assistance. The views expressed herein are solely those of the authors and do not necessarily reflect the views of the Federal Reserve Bank of Kansas City, the Federal Reserve System, or the National Bureau of Economic Research.