This paper documents the recent changes in the structure and estimation procedures of the SAMBA model, providing a complete description of the decision problems that each economic agent faces, the first order conditions that solve those problems, and the new techniques employed to estimate the...

This paper considers a new Keynesian model with the cost channel and evaluates the supply-side effects of monetary policy on macroeconomic volatility and welfare, taking into account the endogenous nature of the objective function of monetary authorities. When the cost channel matters,...