No. 255 - Financial shocks and the real economy in a nonlinear world: a survey of the theoretical and empirical literature

by Andrea Silvestrini, Andrea Zaghini
January 2015
Vai alla versione italiana Site Search

In this paper we present an overview of theoretical and empirical contributions exploring the inter-linkages between financial factors and real economic activity.

We first revisit the main theoretical approaches that allow financial frictions to be embedded into general equilibrium models, and then we survey, from an empirical perspective, the most recent papers focusing on macro-financial linkages, with a particular emphasis on works dealing with parameter time variation and other types of nonlinearities.

We conclude by discussing some policy implications and suggesting directions for future research.

Published in 2015 in: Journal of Policy Modeling, v. 37, 6, pp. 915-929.

Sezione di approfondimento