Journal of the European Economic Association

Frank Smets · Raf Wouters

A sticky-price, sticky-wage dynamic general equilibrium model of the euro area, with habit formation, investment adjustment costs and variable capacity utilisation, is estimated by Bayesian methods on …

Michael B. Devereux · Alan Sutherland

This paper develops a simple, widely applicable approximation method for computing equilibrium country portfolios in dynamic stochastic general equilibrium open-economy macro models -- any number of …

Morten O. Ravn · Vincent Sterk

A HANK model that is tractable enough to solve on paper, built by grafting Diamond-Mortensen-Pissarides search frictions onto a New Keynesian economy and then imposing assumptions that make the wealth …