estimating a business cycle model with investment-specific technological change, preference shocks, and stochastic volatility. …

resulting volatility can induce risk-averse transactors who face transaction costs to desert these markets altogether. Thus … thinness and the consequent price volatility may become joint self-perpetuating features of an equity market, whatever the … volatility of asset fundamentals. If, however, appropriate incentive schemes are adopted to encourage entry of additional …

money demand falls, while a positive goods productivity shock raises temporary output and velocity. The paper explains such … velocity volatility at both business cycle and long run frequencies. With filtered velocity turning negative, starting during … important for velocity during less stable times and the goods productivity shock more important during stable times. …

to an end. This paper offers evidence that the decrease in output volatility still remains in force despite the GR and …

countries. The results are used to draw practical recommendations for the choice of estimation window when forecasting from …