Borenstein, Eliezer; Elkayam, David - In: Economic Modelling 43 (2014) C, pp. 81-99
We show that the preferences suggested by Greenwood, Hercowitz and Huffman (GHH), which are quite common in real business cycle (RBC) models of small open economies, are not suited for reproducing both the business cycle and the equity premium facts of a small open economy. We show that by...
