Frictions are introduced in the information structure of a cash-in-advance dynamic stochastic general equilibrium model with the interest of studying the impact of serially correlated monetary shocks on the variability of velocity. Possessing no analytical solution this dynamic environment, a projection method which parameterizes expectations and employs finite elements in the approximation of ...

We examine solutions in which neither player is worse off from the leadership of one in a policy maker-public game. The loop model of dynamic games is used. Outcome space is dotted with equivalence classes of solutions. The Dynamic Stochastic General Equilibrium (DSGE) results and their New Keynesian variants might represent one category. The economy is the neighborhood of a market-clearing equ...

The Euler equation model for investment with adjustment costs and variable capital utilization is estimated using aggregate US post-war data econometric methods that are robust to weak instruments exploit information in possible structural changes. Various alternative identification assumptions considered, including external instruments, obtained from Dynamic Stochastic General Equilibrium mode...

This study investigates indirect tax shocks' influences on GDP and inflation in Iran’s economy, using a DSGE (Dynamic Stochastic General Equilibrium) model. The results indicate that shock cause equal to one standard deviation consumption can reduce by 0.006% 0.018%. Also, the import causes decrease 0.089% due demand for imported goods. Moreover, goods 0.4% with occurrence of shock; meanwhile, ...

A dynamic stochastic general equilibrium model with recursive utility, search frictions, and capital accumulation is a good start to forming unified theory of asset prices business cycles. The reproduces an equity premium 4.27% per annum, stock market volatility 12.42%, average interest rate 1.97%, while retaining plausible cycle dynamics. are strongly countercyclical, whereas the consumption g...

We combine general equilibrium theory and théorie générale of stochastic processes to derive structural results about equilibrium state prices. JEL Classification: D51, D91, G10, G12