Showing 1 - 10 of 9,383
Households' and firms' subjective inflation expectations play a central role in macroeconomic and intertemporal microeconomic models. We discuss how subjective inflation expectations are measured, the patterns they display, their determinants, and how they shape households' and firms' economic...
Persistent link: https://www.econbiz.de/10013210074
Stochastic General Equilibrium (DSGE) models are the leading framework that macroeconomists have for dealing with this challenge … in an open and transparent manner. This paper reviews the state of DSGE models before the financial crisis and how DSGE … modelers responded to the crisis and its aftermath. In addition, we discuss the role of DSGE models in the policy process …
Persistent link: https://www.econbiz.de/10012452910
Recent work has analyzed the forecasting performance of standard dynamic stochastic general equilibrium (DSGE) models …, but little attention has been given to DSGE models that incorporate nonlinearities in exogenous driving processes. Against … that background, we explore whether incorporating stochastic volatility improves DSGE forecasts (point, interval, and …
Persistent link: https://www.econbiz.de/10012456064
Monetary DSGE models are widely used because they fit the data well and they can be used to address important monetary … policy questions. We provide a selective review of these developments. Policy analysis with DSGE models requires using data …
Persistent link: https://www.econbiz.de/10012462581
This paper develops a dynamic general equilibrium model that is intended to help clarify the role of credit market frictions in business fluctuations, from both a qualitative and a quantitative standpoint. The model is a synthesis of the leading approaches in the literature. In particular, the...
Persistent link: https://www.econbiz.de/10012472350
Using text from 200 million pages of 13,000 US local newspapers and machine learning methods, we construct a 170-year-long measure of economic sentiment at the country and state levels, that expands existing measures in both the time series (by more than a century) and the cross-section. Our...
Persistent link: https://www.econbiz.de/10014468226
This paper considers VAR models incorporating many time series that interact through a few dynamic factors. Several … imposed on the VAR. Structural VAR identification based on timing restrictions, long run restrictions, and restrictions on …
Persistent link: https://www.econbiz.de/10012467213
preference or more generally a demand shock. More recently two other explanations have been advocated: surprise changes in …
Persistent link: https://www.econbiz.de/10012454968
We dissect the comovement patterns of the macroeconomic data, identify a single shock that accounts for the bulk of the … that leading DSGE models seem to lack the propagation mechanism observed in the data …
Persistent link: https://www.econbiz.de/10012452846
While dynamic stochastic general equilibrium (DSGE) models for monetary policy analysis have come a long way, there is … points about assessing the value of these models. First, we document that DSGE models continue to have aspects of crude … analysis in the DSGE context against long-standing objections. We use the iconic Smets-Wouters model for illustrative purposes …
Persistent link: https://www.econbiz.de/10012460752