Martellini, Paolo; Menzio, Guido; Visschers, Ludo - 2019
which the UE and the EU rates are endogenous, we show that an increase in the discount rate leads to a decline in both the … UE and the EU rates. In the data, though, the UE and EU rates move against each other at business cycle frequency. Using … lead to a decline in the aggregate UE rate and to an increase in the aggregate EU rate. However, the decline in the UE rate …