This review presents the main tools and results of the research between finance and macroeconomics. The ambition of this literature is to provide a joint analysis of the business cycle and financial asset returns. This paper adopts this perspective and suggests a critical analysis of the...

The euro area as a whole has experienced a marked downward trend in inflation over the past decades and, concomitantly, a protracted period of depressed activity. Can permanent and gradual shifts in monetary policy be held responsible for these dynamics? To answer this question, we embed...

In this paper, we study issues related to the estimation of long–run government spending multiplier (GSM) in a Dynamic Stochastic General Equilibrium (DSGE) context. We stress a potential source of bias in the GSM arising from the combination of (i) Edgeworth complementarity between private...

This paper introduces incomplete insurance against idioyncratic labour income risk into an otherwise standard New Keynesian business cycle model with involuntary unemployment. Following an adverse monetary policy shock that lowers aggregate demand, job creation is discouraged and unemployment...

Real business cycle (RBC) models with permanent technology shocks usually cannot reproduce business cycle stylized facts. This implies that with a prior in favor of the presence of a unit root in the main macroeconomic variables, one must dismiss the RBC methodology. In this paper we show that...

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 is a quantitative investigation into the characteristics of the Laffer curve in a neoclassical growth model with incomplete markets and heterogeneous, liquidity-constrained agents. We show that the shape of the Laffer curves related to taxes on labor, capital and consumption...

This paper characterizes the short– and long–run effects of overtime de taxation. A dynamic general equilibrium with overtime hours is first developed and calibrated to French data. A fiscal shock consisting of a complete de taxation of overtime hours is then implemented in the model....

The present paper investigates the dynamic effects of disinflation shocks for a number of real macroeconomic variables in the euro area. Using structural VARs, we identify disinflation shocks as the only shocks that can exert a long—run effect on inflation as well as other nominal variables...