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Risk Shocks / Lawrence Christiano, Roberto Motto, Massimo Rostagno.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Christiano, Lawrence.
Contributor:
National Bureau of Economic Research.
Motto, Roberto.
Rostagno, Massimo.
Series:
Working Paper Series (National Bureau of Economic Research) no. w18682.
NBER working paper series no. w18682
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2013.
Summary:
We augment a standard monetary DSGE model to include a Bernanke-Gertler-Gilchrist financial accelerator mechanism. We fit the model to US data, allowing the volatility of cross-sectional idiosyncratic uncertainty to fluctuate over time. We refer to this measure of volatility as 'risk'. We find that fluctuations in risk are the most important shock driving the business cycle.
Notes:
Print version record
January 2013.

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