We review the current state of the estimation of dynamic stochastic general equilibrium
(DSGE) models. After introducing a general framework for dealing with DSGE models, the …

Agent‐based computational economics (ACE) has been used for tackling major research
questions in macroeconomics for at least two decades. This growing field positions itself as …

We investigate the sources of the important shifts in the volatility of US macroeconomic
variables in the postwar period. To this end, we propose the estimation of DSGE models …

Golosov and Lucas recently argued that a menu‐cost model, when made consistent with
salient features of the microdata, predicts approximate monetary neutrality. I argue here that …

The output gap, a production-based macroeconomic variable, is a strong predictor of US
stock returns. It is a prime business cycle indicator that does not include the level of market …

We study the aggregate effects of supply-chain disruptions in the post-pandemic period in a
heterogeneous-firm, general equilibrium model with input-output linkages and a rich set of …

ABSTRACT A countercyclical markup of price over marginal cost is the key transmission
mechanism for demand shocks in textbook New Keynesian (NK) models. This paper re …

This paper examines the role of inventories in the decline of production, trade, and
expenditures in the US in the economic crisis of late 2008 and 2009. Empirically, we show …

We document that delivery lags and transaction-level economics of scale matter for
international trade, leading importers to import infrequently and hold additional inventory. In …

The new quarterly model is a valuable addition to the Bank's 'suite of models'. It does not
represent a significant shift in the Committee's view of how the economy functions or of the …