“...A tractable incomplete-market model with endogenous unemployment risk, sticky prices, real wage rigidity and a fiscal side is calibrated to Euro Area countries...”

“...Both the traditional Mundell-Fleming-Dornbusch framework and standard dynamic general-equilibrium models with complete financial markets predict that an...”

“...We solve the Ramsey-optimal tax plan for a small open economy with an endogenously-determined real exchange rate. The open economy constrains the government's...”

“...This paper proposes a straight model-based analysis of historical war episodes. We analyze the effects of world wars on the macroeconomic dynamics in the US,...”

“...We quantify the effects of competitive tax reforms within a two-country monetary union model with endogenous entry and endogenous tradability. As expected,...”

“...To evaluate fiscal policy reforms for Euro-area countries, this article develops and calibrates a small open economy model. Debt reduction reforms require...”

“...We show that welfare can be lower under complete financial markets than under autarky in a monetary union with home bias, sticky prices, and asymmetric shocks...”

“...Trade in intermediate goods is an important feature of trade in developed small open economies. We show that a model that assumes trade in intermediate goods...”

“...An annual sequence of wages in England starting in 1245 is used. It is shown that a standard AK-type growth model with capital externality and stochastic...”

“...Firms constantly seek to develop and commercialize new goods to satisfy consumer needs. This process of creation and destruction of product varieties has...”