Villa, Stefania - European Central Bank - 2013
whether financial frictions are empirically relevant in the Euro Area (EA) and, if so, which type of financial frictions is … preferred by the data. The models are: (i) Smets and Wouters (2007) (SW); (ii) a SW model with financial frictions originating … in non-financial firms à la Bernanke et al. (1999), (SWBGG); and (iii) a SW model with financial frictions originating in …