Is it possible to explain the house price to GDP ratio and the house price to stock price ratio as being generally constant, deviating from its respective mean only because of shocks to productivity? We build a two-sector RBC model for residential and non-residential capital with adjustment...

Epstein-Zin preferences (or ``EZ'' preferences) have become increasingly popular in recent asset pricing work. Dynamic stochastic general equilibrium (DSGE) models which feature Epstein-Zin preferences are typically considered technically challenging, often thought to require sophisticated...

We quantify the size, uncertainty and sensitivity of fiscal multipliers in response to the American Recovery and Reinvestment Act (ARRA) of 2009. To that end, we extend the benchmark Smets- Wouters (Smets and Wouters, 2007) New Keynesian model, allowing for credit-constrained households, a...

Inspired by the European debt crisis of 2010, this paper provides a theoretical framework to analyze the dynamics of sovereign debt crises in a monetary union. I assume that there is a maturity mismatch between the short maturity debt of a country and the long horizon flow of tax revenues, i.e.,...

This paper seeks to understand the interplay between banks, bank regulation, sovereign debt crisis and central banking in a monetary union, emphasizing the role of emergency lending.

In this paper, I investigate the scope of a model with exogenous habit formation -- or ``catching up with the Joneses'', see Abel (1990) -- to generate the observed equity premium as well as other key macroeconomic facts. Along the way, I derive restrictions for four out of eight parameters for...

This paper seeks to understand the interplay between banks, bank regulation, sovereign default risk and central bank guarantees in a monetary union. I assume that banks can use sovereign bonds for repurchase agreements with a common central bank, and that their sovereign partially backs up any...

type="main" xml:id="geer12039-abs-0001" <title type="main">Abstract</title> <p>This study seeks to understand the interplay between banks, bank regulation, sovereign default risk and central bank guarantees in a monetary union. I assume that banks can use sovereign bonds for repurchase agreements with a common central bank,...</p>

This paper seeks to understand the interplay between banks, bank regulation, sovereign default risk and central bank guarantees in a monetary union. I assume that banks can use sovereign bonds for repurchase agreements with a common central bank, and that their sovereign partially backs up any...

We seek to understand how Laffer curves differ across countries in the US and the EU-14, thereby providing insights into fiscal limits for government spending and the service of sovereign debt. As an application, we analyze the consequences for the permanent sustainability of current debt...