estimate a non-linear DSGE model with a heterogeneous banking sector and an occasionally binding borrowing constraint. The …

What are the effects of beliefs, sentiment, and uncertainty, over the business cycle? To answer this question, we … develop a behavioral New Keynesian macroeconomic model, in which we relax the assumption of rational expectations. Agents are … variances to affect the economy. In forming expectations, agents may be subject to shifts in optimism and pessimism (sentiment …

findings survive three identification strategies and across subsamples. Then, they are rationalized via the estimation of a two …

Epstein-Zin preferences to study the volatility implications of a monetary policy shock. An unexpected increases in the policy … volatility effects of the shock are driven by agents' concern about the (in)ability of the monetary authority to reverse …

-sized uncertainty shock generates a larger contraction in real activity when growth is low (as in recessions) than when growth is high …