for the propagation of news shocks. A DSGE model enriched with a financial sector generates very similar quantitative …We examine the dynamic effects and empirical role of TFP news shocks in the context of frictions in financial markets …, VAR methods also establish a tight link between TFP news shocks and shocks that explain the majority of un …

This paper presents a New Keynesian DSGE model with inventory holding firms. The model distinguishes between goods and …

This paper introduces inventories in an otherwise standard Dynamic Stochastic General Equilibrium Model (DSGE) of the … intermediate goods. The paper's main contribution is to present a DSGE model with inventories that is estimated using Bayesian …

We identify total factor productivity (TFP) news shocks using standard VAR methodology and document a new stylized fact …: in response to news about future increases in TFP, inventories rise and comove positively with other major macroeconomic … aggregates. We show that the standard theoretical model used to capture the effects of news shocks cannot replicate this fact …

identification procedure, we show that the dominant shock driving total factor productivity (TFP) is akin to a diffusion or news …

large-scale SSMs, making it particularly useful to estimate dynamic stochastic general equilibrium (DSGE) models and dynamic … factor models. Tests using a medium-scale DSGE model, namely the 2007 version of the Smets and Wouters model, show that the …

DSGE model that addresses both questions. The model incorporates i) international markets for firm-to-firm trade in … positively linked to the frequency of price changes. Few of these features have been accounted for by existing open economy DSGE …