This is TeX, Version 3.14159 (Web2C 7.3.1) (format=texsis 2004.3.6) 12 MAY 2005 14:22 **proofs (proofs.tex TeXsis version 2.18 (21 April 2001) format preloaded. (TXSmods.tex \sectionminspace=\dimen53 (/home/erm/tex/hoover.tex (/home/erm/tex/fonts.tex \ttglue=\skip30 ) \yesdouble=\count53 \savebase=\skip31 \notenumber=\count54 ) (/home/erm/tex/fonts.tex \ttglue=\skip32 )) (proofs.aux) (/home/erm/tex/hoover.tex (/home/erm/tex/fonts.tex \ttglue=\skip33 ) \yesdouble=\count55 \savebase=\skip34 \notenumber=\count56 ) \openout2 = `proofs.aux'. (proofs.toc [1]) [2] 1. Introduction \openout9 = `proofs.toc'. 2. The Economic Model 2.1. Nomenclature 2.2. Maximization problems [3] 2.3. First-order conditions [4] [5] 2.4. Log-linear computation [6] [7] 3. VARs and the 2-Shock Version of the Model 3.1. The Decision Functions [8] [9] Overfull \hbox (8.31657pt too wide) detected at line 619 [] [] \hbox(93.5+88.5)x391.46176 .\hbox(0.0+0.0)x0.0 .\glue 1.66663 .\vbox(93.5+88.5)x396.44508 ..\hbox(8.5+3.5)x396.44508 ...\glue(\tabskip) 0.0 ...\hbox(8.5+3.5)x72.73485 [] ...\glue(\tabskip) 0.0 ...\hbox(8.5+3.5)x323.71024, glue set 137.1212fil [] ...\glue(\tabskip) 0.0 ..\glue(\baselineskip) 3.91666 ..\hbox(9.58334+3.5)x396.44508 ...\glue(\tabskip) 0.0 ...\hbox(9.58334+3.5)x72.73485, glue set 72.73485fil [] ...\glue(\tabskip) 0.0 ...\hbox(9.58334+3.5)x323.71024, glue set 89.86195fil [] ...\glue(\tabskip) 0.0 ..\glue(\baselineskip) 5.0 ..\hbox(8.5+3.5)x396.44508 ...\glue(\tabskip) 0.0 ...\hbox(8.5+3.5)x72.73485, glue set 72.73485fil [] ...\glue(\tabskip) 0.0 ...\hbox(8.5+3.5)x323.71024, glue set 137.1212fil [] ...\glue(\tabskip) 0.0 ..etc. .\glue 1.66663 Underfull \vbox (badness 10000) has occurred while \output is active \vbox(536.00175+1.94444)x391.46176, glue set 7.26866 .\glue(\topskip) 3.05556 .\hbox(6.94444+1.94444)x391.46176, glue set 157.267fil ..\hbox(0.0+0.0)x20.0 ..\tenrm I ..\glue 3.33333 plus 1.66498 minus 1.11221 ..\tenrm c ..\tenrm a ..etc. .\penalty 10000 .\glue(\abovedisplayskip) 12.0 plus 3.0 minus 9.0 .\glue(\lineskip) 1.0 .etc. [10] 3.2. The Model's Moving Average [11] 3.3. Special Property of the $D$'s [12] 3.4. VAR Coefficients 3.5. Proposition 1: Model has infinite-order VAR [13] [14] 3.6. Blanchard-Quah Identification [15] [16] 3.6.1. Sign convention on $A_0(1,1)$ 3.6.2. Sign convention on $\mathaccent "7016 A(1,1)$ 3.6.3. Full solution [17] 3.6.4. Cholesky decomposition 3.7. Proposition 2: OLS Results [18] [19] [20] 3.8. The Propositions for Two Special Cases 3.8.1. Proposition 3a: No capital in the model [21] 3.8.2. Proposition 3b: Only one shock [22] [23] [24] 4. VARs and 3-Shock Versions of the Model [25] 4.1. 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The Model's Moving Average [30] 4.1.2. Special Property of the $D$'s 4.1.3. Proposition 4: Model has infinite-order VAR [31] [32] [33] 4.1.4. A Way to Make $M$ Singular [34] 4.2. Government Spending Shock and Investment-Output in VAR 4.2.1. The Model's Moving Average [35] 4.3. Investment Tax Shock and Consumption-Output in VAR [36] 4.3.1. The Model's Moving Average [37] 4.4. Adding Variables with Little Effect on Fluctuations [38] 5. VARs and 4-Shock Versions of the Model [39] Overfull \hbox (19.50023pt too wide) detected at line 2815 [] [] \hbox(35.50032+30.50032)x391.46176 .\hbox(13.20952+9.35951)x20.72086 ..\hbox(13.20952+9.35951)x20.72086 ...\hbox(0.0+0.0)x1.2, shifted -2.5 ...\vbox(13.20952+9.35951)x18.32086 [] ...\hbox(0.0+0.0)x1.2, shifted -2.5 .\glue(\thinmuskip) 1.66663 .\hbox(35.50032+30.50032)x388.57451 ..\vbox(0.39998+65.60066)x6.66669, shifted -35.10034 ...\hbox(0.39998+17.60019)x6.66669 [] ...\hbox(0.0+6.00006)x6.66669 [] ...\hbox(0.0+6.00006)x6.66669 [] ...\hbox(0.0+6.00006)x6.66669 [] ...\hbox(0.0+6.00006)x6.66669 [] ...etc. ..\hbox(0.0+0.0)x0.0 ..\glue 1.66663 ..\vbox(35.19995+30.19995)x371.90788 ...\hbox(7.5+2.5)x371.90788 [] ...\kern -12.0 ...\glue(\baselineskip) 2.0 ...\hbox(7.5+2.5)x371.90788 [] ...\glue(\baselineskip) 2.0 ...etc. ..\glue 1.66663 ..etc. [40] [41] [42] [43] ) Output written on proofs.dvi (43 pages, 174212 bytes).