Chiarella, Carl; Semmler, Willi; Mittnik, Stefan; Zhu, … - In: Studies in Nonlinear Dynamics & Econometrics 6 (2002) 1, pp. 1001-1001
In this paper we construct a model of stock market, interest rate and output interaction which is a generalization of the well known 1981 model of Blanchard. We allow for imperfect substitutability between stocks and bonds in the asset market and for lagged portfolio adjustment. The reaction of...
