Christiano, Lawrence J. (contributor); … - 2007
integrates the model of financing
frictions built by Bernanke, Gertler and Gilchrist (1999). Finally, our analysis proceeds in … Christiano, Motto
and Rostagno (2003). With one exception, that model is taken from Bernanke, et al (1999).
The exception has to … difference with Bernanke et al (1999) is that we specify idiosyncratic uncertainty,
σ
t
, and the entrepreneur’s wealth shock, γ …