This paper estimates fiscal policy multipliers for small states using two distinct models: an empirical forecast error model with data from twenty-three across the world, and a dynamic stochastic general equilibrium (DSGE) calibrated to hypothetical state’s economy. We find that, in short term, government consumption investment are both about 0.4, on average, DSGE baseline results, they affecte...

Investigating the Business Cycles of Iranian Economy by Considering Effect Financial Accelerator in Form a DSGE Model

The paper develops a two-agent small-open economy DSGE model, to address the issue about how does the overall macro-economy respond to the fundamental housing demand shock, how does the current account has changed conjunction to the shock, and what is the monetary policy transmission to the real economy.

We confront a variety of medium-scale regime-switching DSGE models against U.S. macroeconomic time series data. Our goal is to employ a uni ed Bayesian framework for these models to test empirical evidence of regime changes in the Federal Reserve's in ation target in the post-war period when heteroscedastic shock disturbances are properly taken into account.