% Table of Contents for job `proofs' -- Created at 2005/5/12 14:22 % ==================================== \TOCitem{1} {\TOCsID{1.}Introduction} {3}% \TOCitem{1} {\TOCsID{2.}The Economic Model} {3}% \TOCitem{2} {\TOCsID{2.1.}Nomenclature} {3}% \TOCitem{2} {\TOCsID{2.2.}Maximization problems} {3}% \TOCitem{2} {\TOCsID{2.3.}First-order conditions} {4}% \TOCitem{2} {\TOCsID{2.4.}Log-linear computation} {6}% \TOCitem{1} {\TOCsID{3.}VARs and the 2-Shock Version of the Model} {8}% \TOCitem{2} {\TOCsID{3.1.}The Decision Functions} {8}% \TOCitem{2} {\TOCsID{3.2.}The Model's Moving Average} {11}% \TOCitem{2} {\TOCsID{3.3.}Special Property of the $D$'s} {12}% \TOCitem{2} {\TOCsID{3.4.}VAR Coefficients} {13}% \TOCitem{2} {\TOCsID{3.5.}Proposition 1: Model has infinite-order VAR} {13}% \TOCitem{2} {\TOCsID{3.6.}Blanchard-Quah Identification} {15}% \TOCitem{3} {\TOCsID{3.6.1.}Sign convention on $A_0(1,1)$} {17}% \TOCitem{3} {\TOCsID{3.6.2.}Sign convention on $\mathaccent "7016 A(1,1)$} {17}% \TOCitem{3} {\TOCsID{3.6.3.}Full solution} {18}% \TOCitem{3} {\TOCsID{3.6.4.}Cholesky decomposition} {18}% \TOCitem{2} {\TOCsID{3.7.}Proposition 2: OLS Results} {18}% \TOCitem{2} {\TOCsID{3.8.}The Propositions for Two Special Cases} {21}% \TOCitem{3} {\TOCsID{3.8.1.}Proposition 3a: No capital in the model} {21}% \TOCitem{3} {\TOCsID{3.8.2.}Proposition 3b: Only one shock} {22}% \TOCitem{1} {\TOCsID{4.}VARs and 3-Shock Versions of the Model} {25}% \TOCitem{2} {\TOCsID{4.1.}Investment Tax Shock and Investment-Output in VAR} {26}% \TOCitem{3} {\TOCsID{4.1.1.}The Model's Moving Average} {30}% \TOCitem{3} {\TOCsID{4.1.2.}Special Property of the $D$'s} {31}% \TOCitem{3} {\TOCsID{4.1.3.}Proposition 4: Model has infinite-order VAR} {32}% \TOCitem{3} {\TOCsID{4.1.4.}A Way to Make $M$ Singular} {34}% \TOCitem{2} {\TOCsID{4.2.}Government Spending Shock and Investment-Output in VAR} {35}% \TOCitem{3} {\TOCsID{4.2.1.}The Model's Moving Average} {35}% \TOCitem{2} {\TOCsID{4.3.}Investment Tax Shock and Consumption-Output in VAR} {36}% \TOCitem{3} {\TOCsID{4.3.1.}The Model's Moving Average} {37}% \TOCitem{2} {\TOCsID{4.4.}Adding Variables with Little Effect on Fluctuations} {38}% \TOCitem{1} {\TOCsID{5.}VARs and 4-Shock Versions of the Model} {39}%