We provide a critical review of macroeconomic models used for monetary policy at central
banks from a finance perspective. We review the history of monetary policy modeling, survey …

We investigate the way investors react to prior gains/losses. We directly examine investor
reactions to different definitions of gains and losses (ie, overall wealth, paper gains and …

In this article we examine the competitive equilibria of a dynamic stochastic economy with
complete markets and collateral constraints. We show that, provided the sets of asset pay …

We study the Lucas asset pricing model in a controlled setting. Participants trade two long‐
lived securities in a continuous open‐book system. The experimental design emulates the …

We compare the performance of the perturbation-based (local) portfolio solution method of
Devereux & Sutherland (2010a, 2011) with a global solution method. As a test suite we use …

In this article, we derive an analytic expression for the representative agent of a large class
of economies populated by agents with “catching up with the Joneses” preferences, but who …

We examine minimal sufficient state spaces for equilibria in a Lucas asset pricing model with
heterogeneous agents and incomplete markets. It is clear that even if all fundamentals of the …

This paper shows that belief differences have strong effects on asset prices in consumption-
based asset-pricing models with long-run risks. Belief heterogeneity leads to time-varying …

The question of how useful information is in financial markets has been discussed for
decades and is still unresolved. In this paper, we challenge the widely held belief that …

This paper analyzes the dynamic properties of portfolios that sustain dynamically complete
markets equilibrium when agents have heterogeneous priors. We argue that the …