We develop a general equilibrium model of a two-region currency union. There are two types of goods: non-traded goods, and traded goods for which markets are segmented. Monetary policy is set by a central monetary authority and is non-neutral due to nominal price rigidities. Fiscal policy is...

In this paper, we consider new bifurcation phenomena in a class of stochastic dynamic macroeconometric models as represented by the stochastic model developed by Leeper and Sims (1994). This model serves as a prototype that could be suitable for monetary policy analysis although the complexity...

I use the automated search algorithm to address practical issues that arise in estimating income and price elasticities for U.S. trade in services: specification of dynamics, specification of the search strategy, simultaneity biases, and aggregation biases. Specifically, starting from a general,...