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Sound Fiscal Reactions to Stochastic Shocks: A DSGE Approach

Javid Bahrami; Meysam Rafei

Volume 19, Issue 58 , April 2014, , Pages 1-37

Abstract
  Using a New Keynesian dynamic stochastic general equilibrium of Iran with price rigidity and imperfect markets, this paper shows how different stochastic shocks affect main macroeconomic variables in presence of variety of reaction functions. In this way, we compare the response of those variables to ...  Read More