How much Keynes and how much Schumpeter? An Estimated Macromodel of the US Economy
Guido Cozzi (),
Beatrice Pataracchia (),
Philipp Pfeiffer () and
Marco Ratto ()
Additional contact information
Beatrice Pataracchia: European Commission – JRC, https://ec.europa.eu/jrc/en
Philipp Pfeiffer: Technische Universitat Berlin, http://www.tu-berlin.de/menue/home/
No 2017-01, Working Papers from Joint Research Centre, European Commission (Ispra site)
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)
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 (1) Track citations by RSS feed
Published by Publications office of the European Union, 2017
Downloads: (external link)
http://publications.jrc.ec.europa.eu/repository/bi ... ubsywpef_newid-2.pdf (application/pdf)
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)
Persistent link: https://EconPapers.repec.org/RePEc:jrs:wpaper:201701
Access Statistics for this paper
More papers in Working Papers from Joint Research Centre, European Commission (Ispra site) Contact information at EDIRC.
Bibliographic data for series maintained by Peter Benczur ().