We show that credit market imperfections substantially increase the government-spending multiplier when the economy enters a liquidity trap. This finding is explained by the tight association between capital goods and firms' collateral, a relationship that we highlight as the...

This paper presents the original and main contributions of T. Sargent and C. Sims to macro-economic modeling. We first briefly review the critics Sargent and Sims addressed to existing modeling. We then emphasize the originality of their two respective approaches. We finally show how their...

This paper studies the local dynamic properties of a simple general equilibrium model with Social vat. Strict balanced budget rules often lead to real indeterminacy of aggregate equilibrium, leaving room for « sunspots » fluctuations. In a closed-economy setup, social vat escapes this...

This paper studies the statistical properties of impulse response functions in structural vector autoregressions (SVARs) with a highly persistent variable as hours worked and long-run identifying restrictions. The highly persistent variable is specified as a nearly stationary persistent process....

[eng] This article compares the performance of VAR and DSGE models. We use the maximum likelihood method to estimate the models for the growth rates of U.S. hourly labor productivity and hours worked in 1959-2003. We show that DSGE models, when they include sufficient real rigidities (such as...

[ger] Die Verlangsamung des weltweiten Wirtschaftswachstums und der Ölschock: welche Anpassungsmaßnahmen sind für die französische Wirtschaft erforderlich? . von Mireille Assouline, Anne Epaulard, Patrick Fève, Marc Vielle.. . Die deutliche Verlangsamung des Wirtschafjtswachstums in den...

[fre] La méthode des moments généralisés et ses extensions. Théorie et applications en macro-économie . par Patrick Fève, François Langot . L'objectif de cet article est d'exposer les résultats théoriques principaux de la méthode des moments généralisés. Dans un premier temps, les...