How much Keynes and how much Schumpeter? An Estimated Macromodel of the US Economy

Guido Cozzi, Beatrice Pataracchia, Philipp Pfeiffer and Marco Ratto

No 2017-01, JRC Working Papers in Economics and Finance from Joint Research Centre, European Commission

Abstract: The macroeconomic experience of the last decade stressed the importance of jointly studying the growth and business cycle fluctuations behavior of the economy. To analyze this issue, we embed a model of Schumpeterian growth into an estimated medium-scale DSGE model. Results from a Bayesian estimation suggest that investment risk premia are a key driver of the slump following the Great Recession. Endogenous innovation dynamics amplifies financial crises and helps explain the slow recovery. Moreover, financial conditions also account for a substantial share of R&D investment dynamics.

Keywords: endogenous growth; R&D; Schumpeterian growth; Bayesian estimation (search for similar items in EconPapers)
JEL-codes: E3 O3 O4 (search for similar items in EconPapers)
Pages: 56 pages
Date: 2017-05
New Economics Papers: this item is included in nep-dge, nep-ino and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Published by Publications office of the European Union, 2017

Downloads: (external link)
https://publications.jrc.ec.europa.eu/repository/handle/JRC104106 (application/pdf)

Related works:
Working Paper: How much Keynes and how much Schumpeter? An Estimated Macromodel of the US Economy (2017)
Working Paper: How much Keynes and how much Schumpeter? An Estimated Macromodel of the US Economy (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jrs:wpaper:201701

Access Statistics for this paper

More papers in JRC Working Papers in Economics and Finance from Joint Research Centre, European Commission Contact information at EDIRC.
Bibliographic data for series maintained by Peter Benczur ().