This dissertation investigates questions that arise when we estimate the dynamic stochastic general equilibrium (DSGE) models. Chapter 1 proposes a model-based approach of estimating the capital stock. We specify a dynamic stochastic general equilibrium (DSGE) model with capital utilization to...

We construct a model that explicitly considers nonparticipation as well as employment and unemployment in order to (i) generate gross worker flows as observed in the U.S. data, and (ii) re-examine the effects of labor market policies frequently evaluated in two state models. The distinction...