We build and estimate a two-sector dynamic stochastic general equilibrium model with two types of inventories: Input inventories facilitate the production of finished goods, output inventories yield ...

Many situations in economics are complicated and competitive. New research raises the question of whether many theories in economics may suffer from the very fundamental problem that the key ...

Understanding economies in times of crises? Modern macroeconomics failed so far. Researchers are now proposing a novel method that makes the effects of shocks on out-of-equilibrium economies ...

This paper employs an applied general equilibrium model to simulate the long-run effects of reductions in U.S. defense expenditures. In the long-run these reductions significantly affect only the ...

This week “The Economist explains” is given over to economics. For each of six days until Saturday this blog will publish a short explainer on a seminal idea. ECONOMISTS can usually explain the past ...