We greatly expand the space of tractable term-structure models. We consider one example that combines positive yields with rich volatility and correlation dynamics. Bond prices are expressed in closed form and estimation is straightforward. We find that the early stages of a recession have...

Facing the current complicated situation of the COVID-19 pandemic, in addition to medical efforts on disease prevention and treatment, governments of countries also have to come up with solutions to deal with the negative impacts of the pandemic on the economy. This study aims to provide...