this paper, we re-examine whether standard theory can account for macroeconomic performance during World War II, including changes in hours worked, consumption, investment, and wages and interest rates. To do this, we construct a dynamic, general equilibrium model with a standard aggregate production function, standard preferences, and competitive markets. The model draws on earlier macroeconomic analyses of World War II by Braun and McGrattan #1993# and Ohanian #1997#
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McGrattan et al. (1999) studied this question.