and customers are prone to fraudulent behavior of sellers and resulting market inefficiencies. We present the first model … framework. We test the model’s predictions in a laboratory experiment. Both in theory and in the experiment diagnostic …

This paper contributes to the on-going empirical debate regarding the role of the RBC model and in particular of … technology shocks in explaining aggregate fluctuations. To this end we estimate the model's posterior density using Markov … vector autoregressive moving average (VARMA) process to describe the movements and co-movements of the model's errors not …

Using a two-sector endogenous growth model, this paper explores how productivity shocks in the goods and human capital … findings, we also assess whether the human capital model or the standard real business cycle (RBC) model better explains the … across all variables and forecast horizons, the two-sector model provides a far better fit to the data. Some other key …

Robust decision making implies welfare costs or robustness premia when the approximating model is the true data … general equilibrium model with human capital and introduce an additional form of precautionary behavior. The latter arises … from the robust decision maker's ability to reduce the effects of model misspecification through allocating time and …

We model EU countries' bank ratings using financial variables and allowing for intercept and slope heterogeneity. Our …

The Generalized Calvo and the Generalized Taylor model of price and wage-setting are, unlike the standard Calvo and … monetary policy transmission by embedding these calibrated models in a standard DSGE model. The Generalized Taylor model is …

parsimonious mixture modeling that allows for fat-tailed errors compared to the normal benchmark case. Applying robust model …This paper investigates the robustness of determinants of economic growth in the presence of model uncertainty …, parameter heterogeneity and outliers. The robust model averaging approach introduced in the paper uses a flexible and …

using multiple integrated assessment models. The study looks at model and parametric uncertainties for population, total … uncertainty in model structure. Our resulting pdfs also provide insights on tail events. …

from a dynamic factor model (DFM). This paper deals with the implementation stage of this practice. We propose a twotiered …