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 ...

This review provides a common framework for researchers thinking about the next generation of micro-founded macro models of growth, inequality, and financial deepening, as well as direction for policy ...

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 ...

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 ...

[Vienna, April 2019] A shock pushes economies out of a state of equilibrium. Modern macroeconomics are still based on the assumption of equilibria. That makes them fail when dealing with economies in ...