We present an estimated dynamic stochastic general equilibrium model of stock market bubbles and business cycles using Bayesian methods. Bubbles emerge through a positive feedback loop mechanism supported by self-fulfilling beliefs. We identify a sentiment shock that drives the movements of...

Background: This paper aims at explaining the gender wage gap in the labor market from the perspective of leisure participation patterns between men and women. The traditional view is that time and effort spent in childbearing activities are the major sources of gender wage gap. Women,...