Article révisé par les pairs
| Résumé : | Households’ asset value is volatile compared to gross domestic product and sometimes features a typical pattern of boom and bust. Such a pattern is observed around the subprime loan bubble in the United States. Many studies have examined what factors play a role in the background. This paper presents a dynamic stochastic general equilibrium model, directly incorporating the households that obtain utility from their wealth and the “sentiment shocks,” which affect the economy through this formulation. By estimating the model using US data, we show that sentiment shocks account for a mild but non-negligible part of macroeconomic variables’ fluctuations. |
