The links between aggregate financial indicators and business fluctuations have been widely addressed in literature while the same interest has not been devoted to the role of microeconomic financial variables in determining macroeconomic results. One of the causes may be individuated in the...

This paper studies how the interplay between technological shocks and financial variables shapes the properties of macroeconomic dynamics. Most of the existing literature has based the analysis of aggregate macroeconomic regularities on the representative agent hypothesis (RAH). However, recent...