This paper studies the role of the equity price channel in business cycle fluctuations, and highlights the equity price … techniques using U.S. data over the sample period 1982Q01 - 2012Q01. We show that a New Keynesian DSGE model with an equity price … channel well mimics the U.S. business cycle. The model reproduces the strong procyclicality of the equity market. The equity …

This paper studies the role of the equity price channel in business cycle fluctuations, and highlights its systemic … model with an equity price channel well mimics the U.S. business cycle. Moreover, the equity price channel significantly … the equity price channel as a different aspect to general equilibrium models with financial frictions, and emphasizes the …