Macroeconomics at the intermediate and graduate levels rests on three workhorses: the
Solow-Swan model, the overlapping generations (OLG) model, and the Ramsey model. The …

We present a simple theory-based measure of the variations in aggregate economic
efficiency: the gap between the marginal product of labor and the household's consumption …

Macroeconomic shocks account for most of the variability of nominal Treasury yields,
inducing parallel shifts in the level of the yield curve. We develop a new approach to …

We demonstrate that aggregate employment and consumption can increase without a
corresponding movement in productivity in a model with heterogeneous agents where the …

In this paper, I consider whether postwar fiscal policy has helped stabilize the US economy. I
do this by adding to the stochastic growth model fiscal policy feedback rules estimated from …

Why do policymakers and economists within a policymaking institution choose to throw
away a model and to develop an alternative one? Why do they choose to stick to an existing …

Using quarterly data for the period 1985: 1–2011: 1, this paper uses a stylised, open
economy, structural VAR model to identify the types of shocks responsible for …

A two-sector real business cycle model, estimated with postwar US data, identifies shocks to
the levels and growth rates of total factor productivity in distinct consumption-and investment …

This paper investigates the causal links between financial development and economic
growth in China by employing the Granger causality test within a VARECM framework. Bi …

We examine the ability of six labour market models to account for the business cycle
behaviour of UK labour markets when embedded in a stochastic growth model. We assess …