Bask, Mikael; Madeira, João - 2011
We outline a dynamic stochastic general equilibrium (DSGE) model with trend extrapo-lation in asset pricing that we fit … to quarterly U.S. macroeconomic time series with Baye-sian techniques. To be more precise, we modify the DSGE model in … an important in-gredient in DSGE models that aim to understand business cycles dynamics in general and the interaction …