Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/283617 
Year of Publication: 
2024
Series/Report no.: 
IWH Discussion Papers No. 4/2024
Publisher: 
Halle Institute for Economic Research (IWH), Halle (Saale)
Abstract: 
I estimate a dynamic stochastic general equilibrium (DSGE) model for the United States that incorporates oil market shocks and risk shocks working through credit market frictions. The findings of this analysis indicate that risk shocks play a crucial role during the Great Recession and the Dot-Com bubble but not during other economic downturns. Credit market frictions do not amplify persistent oil market shocks. This result holds as long as entry and exit rates of entrepreneurs are independent of the business cycle.
Subjects: 
financial frictions
NK-DSGE models
oil price
recessions
risk
JEL: 
E32
E37
E44
Q43
Document Type: 
Working Paper

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