TY  - UNPD
A1  - Böhl, Gregor
A1  - Strobel, Felix
T1  - US business cycle dynamics at the zero lower bound
T2  - Working paper series / Institute for Monetary and Financial Stability ; 143
N2  - Using a nonlinear Bayesian likelihood approach that fully accounts for the zero lower bound on nominal interest rates, the authors analyze US post-crisis business cycle dynamics and provide reference parameter estimates. They find that neither the inclusion of financial frictions nor that of household heterogeneity improve the empirical fit of the standard model, or its ability to provide a joint explanation for the post-2007 dynamics. Associated financial shocks mis-predict an increase in consumption. The common practice of omitting the ZLB period in the estimation severely distorts the analysis of the more recent economic dynamics.
T3  - Working paper series / Institute for Monetary and Financial Stability - 143 
KW  - Zero Lower Bound
KW  - Bayesian Estimation
KW  - Great Recession
KW  - Business Cycles
Y1  - 2020
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/54274
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-542741
UR  - https://www.imfs-frankfurt.de/fileadmin/user_upload/IMFS_WP/IMFS_WP_143.pdf
IS  - June 23, 2020
PB  - Johann Wolfgang Goethe-Univ., Inst. for Monetary and Financial Stability
CY  - Frankfurt am Main
ER  -