We develop a medium size dynamic stochastic general equilibrium (DSGE) model to assess the macroeconomic consequences of introducing an interest-bearing central bank digital currency (CBDC), electronic alternative payment with public use properties cash and that can furnish as settlement balances. The consists seven sectors, namely households, retail firms, wholesale capital producing commercia...

Nowadays, banks are considered as one of the major components of the financial system of a country and any deficits and malfunction in the banking system will negatively affect the performance of the real sector. Therefore, there is a need for more investigation on the behavior of banks and factors affecting those behaviors in a country. One of the issues that affect the behavior of banks is sy...

This paper studies wage-setting coordination in a two-sector, open economy dynamic stochastic general equilibrium (DSGE) model. Two large sectoral unions anticipate the effects of their wage demands on aggregate variables. In an economy, there are externalities that can take into account to increase welfare, but strategic interaction between tends erode this gain. When takes place through norm ...

The relation between macroeconomic fundamentals and the cross section of asset returns is studied through the lens of dynamic stochastic general equilibrium (DSGE) models. We provide a full-information Bayesian estimation of the model using seven macroeconomic variables and extract the time series of three fundamental shocks to the economy for the period of 1966Q1-2010Q3: neutral technology (NT...

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...

Abstract: In the article tax rates impact on GDP in Poland is analysed. The analysis is based on dynamic stochastic general equilibrium model (DSGE model). Impulse-response analysis shows that the increase in income tax rate causes the decrease in capital, labour and production. Moreover capital is partially replaced by consumption, because households minimise consumption fluctuations. The comp...