 The sharp effects of sudden stop episodes are not only related to the large magnitude of the shock, but also to the fact that there is a negative productivity shock with a change in trend.In order to study sudden stop episodes, using data from the 1994 economic crisis in Mexico, this model decomposes it to obtain a representation of transitory and permanent technology shocks.The results show that including permanent technology shocks is able to produce the behavior observed during a sudden stop episode.