This paper develops and estimates a dynamic stochastic general equilibrium (DSGE) model with sticky prices and wages for the euro area. The model incorporates various other features such as habit formation, costs of adjustment in capital accumulation and variable capacity utilisation. It is...

The paper addresses and summarizes the role of unemployment in the transformation process from an economic system with a dominant state sector to a system with a dominant private sector. After reviewing the basic facts and some of the main explanations why unemployment is high during transition...

Climate change affects the physical and biological system in many regions of the world. The extent to which human systems will suffer economically from climate change depends on the adaptive capabilities within a region as well as across regions. We use an economic General-Equilibrium model and...

We develop a numerical procedure that facilitates efficient likelihood evaluation in applications involving non-linear and non-Gaussian state-space models. The procedure approximates necessary integrals using continuous approximations of target densities. Construction is achieved via efficient...

We construct a dynamic, general equilibrium model of tax evasion where agents choose to report some of their income. Unreported income requires using a payment method that avoids recordkeeping - cash. Trade using cash to avoid taxes is the theoretical measure of the "shadow economy" from our...