We study the effects of information shocks on macroeconomic and term structure dynamics in an estimated medium-scale DSGE model for the US economy. We consider news about total factor productivity and investment-specific technology, as well as foresight about monetary policy. Our empirical...

In this paper we discuss the role of the cross-sectional heterogeneity of beliefs in the context of understanding and assessing macroeconomic vulnerability. Emphasis lies on the potential of changing levels of disagreement in expectations to influence the propensity of the economy to switch...

The aim of this study is to assess the extent to which the degree of heterogeneity of inflation expectations is driven by the flow of information related to current and future price developments. To that end, we follow three routes: i) We propose different measures of information flow that have...

In this paper we discuss the role of the cross-sectional heterogeneity of beliefs in the context of understanding and assessing macroeconomic vulnerability. Emphasis lies on the potential of changing levels of disagreement in expectations to influence the propensity of the economy to switch...

I propose a novel channel for the emergence of spatial correlation in housing market liquidity. Using micro-level panel data on both actual transactions and household valuations of their own non-traded properties, I find that market thinness and perceived house price growth rates are strongly...

In an attempt to keep up with the social standards defined by their peer group, households can use long-term collateralised lending to finance purchases of goods that signal social value - most notably, real estate. Because in the social status game somebody's advance is always somebody else's...