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About Advmacro 2014 Falltopic 7 Final
The document summarizes Mark Gertler's lecture on incorporating financial frictions into dynamic stochastic general equilibrium (DSGE) models. It discusses how conventional DSGE models assume perfect capital markets, while models with financial frictions allow for an external finance premium and a financial accelerator effect. The lecture then outlines a Bernanke/Gertler/Gilchrist financial accelerator model with households, entrepreneurs/firms, capital producers, retailers, and a central bank. It derives the optimal choices for labor, capital, and production in the model economy.
Detailed Information
| Author: | ['Alihasen Yacob'] |
|---|---|
| Publication Year: | 2020 |
| Pages: | 40 |
| Language: | English |
| Format: | |
| Price: | FREE |
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