Le, Vo; Meenagh, David; Minford, Patrick; Ou, Zhirong - In: Open Economies Review 24 (2013) 4, pp. 581-611
We add the Bernanke-Gertler-Gilchrist model to a world model consisting of the US, the Euro-zone and the Rest of the World in order to explore the causes of the banking crisis. We test the model against linear-detrended data and reestimate it by indirect inference; the resulting model passes the...