Talk:Demand shock

A fact from Demand shock appeared on Wikipedia's Main Page in the Did you know column on 10 November 2008, and was viewed approximately 674 times (disclaimer) (check views). The text of the entry was as follows:

Did you know... that the subprime mortgage crisis, among several other factors, led to a negative demand shock in the U.S. economy, which causes demand for goods and services to decrease?

A record of the entry may be seen at Wikipedia:Recent additions/2008/November.

Wikipedia

Merge

I suggest merging this article and Supply shock into Shock (economics), to make one article that has significant content, instead of three articles that are inadequate. Geoffrey.landis (talk) 15:34, 30 January 2015 (UTC)[reply]

I'm not convinced that the sub-prime crisis was a demand shock. It was an idiosyncratic shock to inputs of banks, cascading into decreased consumer spending and into other sectors and countries. I would add some contribution on the micro origins of aggregate fluctuations. — Preceding unsigned comment added by Glennmagerman (talk • contribs) 11:16, 23 December 2015 (UTC)[reply]

Dr. Pagan's comment on this article

Dr. Pagan has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:

I feel that a demand shock has to have the idea that it is unexpected given the information available. Thus if a price changes and quantity demanded falls we would not think of this as a shock but simply as a consequence of a normal relationship. If the price change was unexpected then we would say that there was a shock to price and hence demand. So I am bothered by the tone of this entry. There are quotes from Mervyn King. In one he says that there is a large negative demand shock. In the second quote he does not mention a demand shock but rather an imbalance between domestic and foreign factors, and he presumably had the idea that this would lead to some adjustment ( this was implicit in many comments about imbalances by institutions such as the IMF in those years). This doesn’t seem to me to describe a shock but an existing state of affairs that would be expected to unwind. The Asian crisis was an example of a shock as it was not expected. The GFC was a shock to many policy makers. The sub-prime crisis and lower household were outcomes that would be expected to have some effects. It was the fact that the effects were much larger than expected that led to a demand shock.

We hope Wikipedians on this talk page can take advantage of these comments and improve the quality of the article accordingly.

Dr. Pagan has published scholarly research which seems to be relevant to this Wikipedia article:

Reference : Adrian R. Pagan & M. Hashem Pesaran, 2008. "Econometric Analysis of Structural Systems with Permanent and Transitory Shocks," Discussion Papers 2008-04, School of Economics, The University of New South Wales.

ExpertIdeasBot (talk) 14:32, 19 May 2016 (UTC)[reply]

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