We study a self-reflexive DSGE model with heterogeneous households, aimed at characterising the impact of economic recessions on different strata society. Our framework allows to analyse combined effect income inequalities and confidence feedback mediated by social networks. By varying parameters model, we find crisis typologies: loss may propagate mostly within high or low rather sharp crossov...

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.

This paper uses a micro-founded DSGE model to compare second-best optimal environmental policy and the resulting allocation to first-best allocation. The focus is on the source and size of uncertainty, and how this affects optimal choices and the inferiority of second best vis-à-vis first best.

YADA (Yet Another Dsge Application) is a Matlab program for Bayesian estimation and evaluation of Dynamic Stochastic General Equilibrium and vector autoregressive models. This paper provides the mathematical details for the various functions used by the software. First, some rather famous examples of DSGE models are presented and all these models are included as examples in the YADA distributio...

Social capital plays a role in many desirable economic outcomes. We analyze how these beneficial effects translate into the performance of economies by developing dynamic stochastic general equilibrium (DSGE) model featuring social explaining Solow residual. then simulate and estimate with Bayesian techniques using Italian data. Our framework fits actual data better than standard DSGE model, su...

Economists have been coming up with business cycle models since the time of Smith, Ricardo, and Marx [5]. Most modern economists take Samuelson’s Multiplier-Accelerator model [12], and Keynes’ model of deficient demand as the starting points for modern policy debates, with the Real Business Cycle model and it’s ‘computable’ variant, the Dynamic Stochastic General Equilibrium model (DSGE), the m...

In this paper, we investigate the consequences of breaks in mean for the estimates of model parameters and the resulting inferences about the structure of the economy and policy implications. We explore the behavior of DSGE models that undergo occasional, but permanent shocks to the parameters that determine their steady state. We present a method for approximating the state space representatio...