We augment a linearized dynamic stochastic general equilibrium (DSGE) model with a tractable endogenous risk mechanism … their conditional distributions. In particular, the model matches the key stylized facts of growth at risk. Accounting for …

develop a macro-financial structural model with two novel features. First, we include idiosyncratic and aggregate risk in a …

fiscal policy. Using a variant of the model by Curdia and Woodford (2009), we study a ""sovereign risk channel"" through … which sovereign default risk raises funding costs in the private sector. If monetary policy is constrained, the sovereign … risk channel exacerbates indeterminacy problems: private-sector beliefs of a weakening economy may become self …

sectors via the destruction of capital stocks and jumps in risk premia. These disruptions often entail negative feedback e … explore this causal nexus and the e?ects of rare large disasters resulting in capital losses and rising risk premia. Our …