“...This paper proposes a perturbation-based approach to implement the idea of endogenous financial risk in a standard DSGE macro-model. Recent papers, such as...”

“...This paper estimates a DSGE model with many types of shocks and frictions for both the US and the euro area economy over a common sample period (1974-2002)...”

“...This paper develops and estimates a dynamic stochastic general equilibrium (DSGE) model with sticky prices and wages for the euro area. The model incorporates...”

“...By expanding the macro part of macro-finance models, historical fluctuations in US bond yields turn out to be largely consistent with the rational expectations...”

“...We analyze financial risk premiums and real economic dynamics in a DSGE model with three types of agents—shareholders, bondholders and workers—that differ in...”

“...We evaluate the empirical relevance of learning by private agents in an estimated medium-scale DSGE model. We replace the standard rational expectations...”

“...We analyze financial risk premiums and real economic dynamics in a DSGE model with three types of agents-shareholders, bondholders and workers-that differ in...”

“...Smets and Wouters (2003) find that at short- and medium-term horizons stochastic variations in the goods market mark-up are the most important source of...”

“...nrpages: 145 status: published...”