How much Keynes and how much Schumpeter? An Estimated Macromodel of the US Economy
Guido Cozzi (),
Marco Ratto () and
MPRA Paper from University Library of Munich, Germany
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; New Keynesian Economics; R&D; Schumpeterian Growth; Bayesian Estimation. (search for similar items in EconPapers)
JEL-codes: E32 O3 O33 O42 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-ino and nep-mac
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Working Paper: How much Keynes and how much Schumpeter? An Estimated Macromodel of the US Economy (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:77771
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