This study estimates a financial friction model and three extensions solved up to the third order using a Bayesian approach, and compare the estimated model implications for business cycles in emerging countries. Our empirical results are as follows: First, we find that adding a country premium...

In this paper we analyze the impact of uncertainty shocks on the Brazilian economy. We use a general equilibrium model in such a way that the transmission channels of the shocks could be identified and we solve the model using a third order approximation for the policy functions since lower...

We provide a structural investigation and interpretation of the questions: What is the origin of business cycle fluctuations? What is the main source of recessions, in particular, since the early 1970s? Are there energy business cycles? Indirect Inference estimation of a two-sector dynamic...

The paper reviews adjustment dynamics in the EMU on the basis of estimated DSGE models for four large EA Member States (DE, FR, IT, ES). We compare the response of the four countries to identical shocks and find a particularly strong response of employment and wages in ES, a high sensitivity of...

Are business cycles different according to the exchange rate regime? Baxter & Stockman have inconclusive results. We reinvestigate this question with more recent data and a different methodology and find evidence, for some aggregates, that their business cycle behavior has changed. We then try...

The paper reviews adjustment dynamics in the EMU on the basis of estimated DSGE models for four large EA Member States (DE, FR, IT, ES). We compare the response of the four countries to identical shocks and find a particularly strong response of employment and wages in ES, a high sensitivity of...