In recent times, inspired by the work of Michael Woodford and Paul De Grauwe, I have begun to explore a DSGE model with characteristics that I would like such a model to have.
- heterogeneous households
- credit frictions, or in other words, an imperfect financial sector
- endogenous household behaviour
Some of my posts working towards this model include:
This is definitely a long term project and I’m always looking for ideas and suggestions for how to make this work. If you have papers to suggest or advice to give, please do get in touch.