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lectures/irfs_in_hall_model.md

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Investment is much more responsive to the endowment shock at shorter time
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horizons.
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## Example 2: Higher Adjustment Costs
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## Example 2: higher adjustment costs
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We generate our next economy by making only one change to the parameters
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of Example 1: we raise the parameter associated with the cost of
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have a permanent effect on the levels of either consumption or
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investment.
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## Example 3: Durable Consumption Goods
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## Example 3: durable consumption goods
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We generate our third economy by raising $\phi_1$ further, to 1.0.
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We also raise the production function parameter from 0.1 to 0.15 (which

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