We study the relation between macroeconomic fundamentals and asset pricing through the lens of a state of the art dynamic stochastic general equilibrium (DSGE) model considered in Christiano, Trabandt and Walentin (2011). We provide a full-information Bayesian estimation of the model using macro variables and extract three fundamental shocks to the economy through the model: neutral technology ...

This paper proposes an empirical dynamic stochastic general equilibrium (DSGE) framework to measure monetary policy when the nominal short-term interest rate is zero. The framework assumes that there exists a shadow rate which represents the monetary policy stance of a central bank. When the shadow rate is positive, it is observed as the policy rate of the central bank. However, when it is nega...

Central questions raised by recent experience are “why do housing prices fluctuate?” and “what should central banks do about it?” For member states of a currency union, such as Spain or Texas, independent monetary policy cannot be conducted, so that it is important to inquire whether fluctuating housing prices make currency union participation undesirable. In this timely paper, Oriol Aspachs-Br...

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

The Boltzmann–Gibbs distribution is currently widely used in economic modeling. One of the applications is integrated with the DSGE (Dynamic Stochastic General Equilibrium) model. However, a question that arises concerns whether the Boltzmann–Gibbs distribution can be directly applied, without considering the underlying social network structure more seriously, even though the social network str...