This paper estimates a dynamic stochastic general equilibrium (DSGE) model for the European Monetary Union by using … Bayesian techniques. A salient feature of the model is an extension of the typically postulated quadratic cost structure for …

-Keynesian model with an endogenous distribution of wealth between workers and capitalists which permits such a corner solution of all … Cambridge equation. More importantly, simulations show that the model conforms to Piketty's empirical findings during a … by our model. …