Christiano, Lawrence J. - 2007
Using quot;business cycle accounting,quot; Chari, Kehoe, and McGrattan (2006) conclude that models of financial … frictions which create a wedge in the intertemporal Euler equation are not promising avenues for modeling business cycle … of intertemporal-wedge shocks is not identified under business cycle accounting. Chari, Kehoe, and McGrattan potentially …