Afonso, António; Sousa, Ricardo M. - 2009
number of variables in the system, 0
t
are the fundamental
economic shocks that span the space of innovations to X
t
, and … that the variables in X
t
can be separated into 3 groups: (i) a subset of n
1
variables, X
1t
, whose contemporaneous …
variables, X
2t
, that respond contemporaneously to the
fiscal policy shocks and whose values appear in the policy function …