Sudden and uncertain events often cause cross-contagion of risk among various sectors of the macroeconomy. This paper introduces the stochastic volatility shock that follows a thick-tailed Student's t-distribution into a high-order approximate dynamic stochastic general equilibrium (DSGE) model...

Given the existence of real estate market bubbles and risks arising from high government debt, countries are faced with the challenge of preventing systemic risks. This study investigates the macroeconomic dynamics of the real estate market and local government debt risk from the perspective of...