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In this paper we propose an approach to identify indipendently the parameters describing the structure of the economy from the parameters describing central bank preferences. We first estimate the parameters describing the structure of the US economy by considering a parsimonious specification...
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We provide evidence suggesting that the cross-sectional distributions of U.S. consumption and its growth rate obey the …
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Our new model of consumption-based habit formation preferences generates loglinear, homoskedastic macroeconomic … rate takes the form of an exactly loglinear consumption Euler equation, commonly assumed in New Keynesian models …
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