Weder, M.2007-07-102007-07-102006German Economic Review, 2006; 7(1):113-1331465-64851468-0475http://hdl.handle.net/2440/35183The definitive version of this paper can be found at www.blackwell-synergy.comThis paper evaluates the role of preference shocks during the Great Depression in Germany. From Euler equation residuals, I am able to identify a series of contractionary shocks that struck the German economy from 1929 to 1932. I apply the sequence of these taste innovations to a dynamic general-equilibrium model and find that the size and the order of shocks can generate a pattern that can explain the lion's share of the decline in economic activity. The artificial economy also predicts a swift recovery after 1932, thereby questioning any significant effects of Nazi economic policy.enJournal article002006336710.1111/j.1468-0475.2006.00149.x2-s2.0-3364653846550978