An Estimated DSGE Model of the Indian Economy.



Output



Investment


Consumption (Aggregate)                Real Wage


0.5


2468 10  2468 10

Marginal Costs                      Tobin’s Q

0—■--------■--------■--------■--------


0

-0.5



2    4    6    8    10


-«>.......--'•'

-1 —.-------.-------.-------.-------

2    4    6    8    10


Figure 7: Estimated Impulse Responses to a Price Mark-up Shock

50



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